Publication date: July 24, 2025

In January and April of this year, we already paid extensive attention to Alphabet. Wednesday evening, July 23, this parent company of Google and YouTube, among others, came out with its second-quarter 2025 figures. The stock price is fast approaching the target price calculated by our system. Reason enough to give an update.

To provide an accurate and complete understanding, we recommend reading the previous articles first.
First, read the January 2, 2025, article on Alphabet here and the most recent April 17 article here.

What is the current situation at Alphabet?

Expectations for second-quarter earnings were high, but Alphabet managed to surprise positively once again. Revenue rose above expectations by 14% to $96.4 billion, while net profit rose 19% to $28.2 billion. This growth was mainly driven by Google Search and the impressive 32% revenue growth at Google Cloud. This growth was mainly driven by OpenAI using this service. In addition, YouTube achieved a substantial revenue growth of 13% to $9.7 billion. The results are above expectations.

Alphabet remains at the forefront of AI developments. Thanks to scale and its infrastructure, Alphabet is keeping AI competitors Microsoft, Meta and Amazon behind for now. The massive AI user base is seen by Alphabet as a foundation for future growth.

Within the group, there are some concerns regarding the Other Bets division, which includes initiatives such as Waymo’s autonomous vehicle project. Losses in this segment continue to grow, and questions about the long-term viability are increasing. Nevertheless, the impact of Other Bets on Alphabet as a whole remains relatively limited.

What is Alphabet's analyst expectation?

Both fundamental analysts and technical analysts at major international banks have Alphabet shares on buy. The average price target is $209. Based on the latest quarterly results, a U.S. investment bank raised the price target this morning from $215 to $225.

What is our expectation of Alphabet?

As you have read in previous articles, we have indicated a buy opportunity at $150 with a price target $225. Our algorithmic system indicates that this price target will most likely be met in the coming months. Thus, with a current price of about $195, a final sprint of about 15% can be pulled out.

According to our model's current most likely scenario, we should expect some headwinds at Alphabet in 2026. As a result, the share price may correct to around $155. For the years that follow, Alphabet may continue to rise above $300.

Conclusion

Alphabet is a financially strong company that once again positively surprised the market. Based on the price pattern and the positive developments within the company, we expect the price target of $225 to be reached soon. You can consider taking profits on your position around that level from the $150 as reported in the previous articles. The probability is high that the share price will experience a broad correction in 2026.

Disclaimer: Investing involves risk. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. They are therefore for educational purposes only.