Alphabet Gets Price Target Boost Ahead Of Q2 Print: Retail Says ‘Google Is So Undervalued’

Alphabet Inc.(GOOGL) (GOOG) received a vote of confidence from Guggenheim as the research firm boosted its price target ahead of the tech giant’s second-quarter (Q2) earnings report. 

The revised target increases to $210 from the previous $190, with the brokerage maintaining its ‘Buy’ rating on the stock, according to TheFly.

Alphabet stock inched 0.6% lower on Wednesday, after the morning bell. On Stocktwits, retail sentiment around the stock was highest in a week, improving to ‘bullish’ (71/100) from ‘neutral’ territory the previous day. 

Message volume levels remained ‘high’ in the last 24 hours. The stock saw a 360% surge in retail chatter over the past month.

 A bullish user said that ‘Google is so undervalued’ and expressed optimism about the earnings.

The research note outlines a slightly more optimistic revenue outlook, citing improved trends among advertisers throughout the quarter and favorable currency effects stemming from a weakening U.S. dollar. 

According to Guggenheim, Alphabet’s core advertising business, particularly its Search and Other segment, is likely to post double-digit growth. 

This performance is anticipated to surpass Wall Street's current expectations for the quarter, aided by a recovery in digital ad spending and continued momentum in key international markets.

According to Fiscal AI data, analysts expect Alphabet’s Q2 revenue to be $93.95 billion and the earnings per share (EPS) of $2.19.

The firm’s cloud division and YouTube business will also be closely watched as potential contributors to the upside.

In the first quarter, Alphabet reported earnings per share (EPS) of $2.81 and revenue of $90.23 billion. Google Cloud revenue rose 28% year-on-year (YoY) to $ 12.26 billion, and that of Google Services climbed 10% YoY.

The company will report its Q2 earnings on Wednesday after market close.

Alphabet stock has gained 0.45% year-to-date and more than 4% over the last 12 months.

Also See: AT&T, GE Vernova Among The Most Trending Stocks On Wednesday Morning: Here’s Why

For updates and corrections, email newsroom[at]stocktwits[dot]com.