Loop Turns Bullish on Alphabet (GOOGL): ‘Wall of Worry Obliterated Under Waves of AI Enthusiasm’

Core Insights - Alphabet Inc. has been upgraded to "Buy" from "Hold" with a new price target of $320.00, reflecting a positive shift in investor sentiment regarding AI's impact on search [1] - The traffic share to Gemini has doubled year-over-year, indicating growing recognition of Google Cloud's potential and its proprietary AI processors [2] - The target multiple for Google core has been raised to 20X EPS, with a significant increase in growth outlook for Google Cloud, maintaining a target multiple of 25X adjusted EBITDA [3] Company Performance - Analysts believe concerns about AI cannibalization of search have diminished, with Google search results remaining robust due to AI features [1] - The bullish outlook on Alphabet shares is driven by renewed confidence in AI-led growth and valuation upside across its core business and Cloud services [2] Market Dynamics - There are ongoing questions regarding long-term search market dynamics, which primarily influence valuation [3] - The revision of target multiples for Google core constitutes about two-thirds of the overall target revision, highlighting a strategic adjustment in valuation approach [3]