Google's Q3 Sends Stock To New Highs, Analysts Say 'AI Momentum Is Nanobananas'

Core Insights - Alphabet, Inc. reported historic Q3 results, achieving over $100 billion in revenue for the first time, with total revenue reaching $102.4 billion, a 16% year-over-year increase [1][2] - Net income rose by 33% to nearly $35 billion, and earnings per share increased by 35% to $2.87 [2] Financial Performance - Google Cloud revenue grew by 34% to $15.16 billion [2] - Search revenue increased by 14.5% to $56.57 billion [2] - YouTube ad revenue saw a growth of 15% to $10.26 billion [2] Analyst Reactions - Analysts expressed enthusiasm regarding Alphabet's performance and its investments in AI infrastructure [3] - Canaccord Genuity maintained a Buy rating and raised the price target from $270 to $330, highlighting AI-driven momentum across various business lines [4][5] - Wedbush Securities reiterated an Outperform rating and increased its price target to $320 from $245, emphasizing Alphabet's leadership in AI [6][7] - Needham raised its price target from $260 to $330, noting the effectiveness of Alphabet's generative AI strategy [8][9] - KeyBanc Capital Markets also raised its price target from $300 to $330, focusing on Alphabet's AI advancements [10][11] - Rosenblatt Securities maintained a Neutral rating but raised its price target from $224 to $279, acknowledging strong quarterly results while expressing caution about future competition [12] Capital Expenditures - Alphabet increased its 2025 capital expenditures forecast to $91–$93 billion, up from $85 billion, with significant increases planned for 2026 [5][7] - Q3 capital expenditures surged by 83% year-over-year to $24 billion, reflecting a strong focus on Cloud and AI investments [9]