Analysts Bullish on Alphabet Ahead of Earnings: What You Need to Know

Alphabet Inc., the parent company of Google, is set to report its earnings for the first quarter of 2025 on February 4th. As the date approaches, analysts have been weighing in with their expectations and ratings for the tech giant. The consensus EPS expectation stands at $2.12, with Roth Capital estimating $2.30 and Cantor Fitzgerald estimating $2.30 for Q1 2025. Alphabet has a history of beating analyst expectations, having reported an EPS of $2.12 in the previous quarter, which exceeded the consensus estimate by $0.29. The company's revenue for the quarter also surpassed the forecasted $86.39 billion, amounting to $88.27 billion.



Analysts' ratings for Alphabet's stock reflect a generally bullish outlook. As of the past quarter, 40 analysts have provided ratings, with 13 rating the stock as a "Strong Buy" or "Buy," 17 as "Somewhat Bullish," and 10 as "Hold." None of the analysts have rated the stock as "Somewhat Bearish" or "Bearish." This indicates a strong consensus among analysts that Alphabet is a solid investment opportunity.

The average 12-month price target for Alphabet is $203.55, with a high estimate of $225.00 and a low estimate of $170.00. This average price target represents a 0.64% increase from the previous average of $202.26. The upward trend in price targets suggests that analysts expect the company's stock to appreciate in value over the next year.

Several analysts have recently raised their ratings or price targets for Alphabet, reflecting their positive outlook on the company's performance and growth prospects. For example, Alan Gould of Loop Capital raised his rating from "Hold" to "Buy" and increased his price target from $170.00 to $185.00. Michael Levine of Pivotal Research raised his rating from "Buy" to "Strong Buy" and increased his price target from $215.00 to $225.00. Mark Shmulik of Bernstein raised his rating from "Market Perform" to "Buy" and increased his price target from $180.00 to $185.00.



Analysts' positive ratings and price targets can be attributed to Alphabet's strong recent performance, including a notable earnings beat in the previous quarter. The company's diversified offerings, including Google Services, Google Cloud, and Other Bets, also contribute to its robust financial outlook and growth prospects. Additionally, Alphabet's investments in up-and-coming technologies such as self-driving cars (Waymo), health (Verily), and internet access (Google Fiber) can drive optimism among analysts.

As Alphabet prepares to report its earnings for the first quarter of 2025, investors and analysts will be closely watching the company's performance and guidance for the coming quarters. With a strong track record and positive analyst sentiment, Alphabet is well-positioned to continue its growth trajectory and deliver value to shareholders.