Google Stock Price Climbs 5.01% Amid AI Expansion and Antitrust Challenges

Alphabet Inc. (NASDAQ: GOOGL), the parent company of Google, has been under the spotlight due to its strategic advancements and recent stock performance. On July 16, Cantor Fitzgerald analyst Deepak Mathivanan adjusted his price target for Google stock to $196.00 from the previous $171.00, while maintaining a “Neutral” rating. This adjustment reflects the firm's confidence in Google’s competitive positioning in artificial intelligence, although the firm remains cautious due to ongoing Antitrust challenges.

The strategic focus for Google remains crucial as analysts predict that the company’s Q2 2025 results should surpass estimates, driven by strong performances in its core search and YouTube businesses. Additionally, Google’s cloud revenue growth is expected to reach the mid-20% year-over-year, fueled by increasing AI inference demand. Despite increased spending in areas such as depreciation, infrastructure, operational expenses, and compensation, the company is projected to achieve EBIT margin leverage from operational efficiencies.

In terms of capital expenditure, Google is progressing steadily with its data center build-out plans. However, given the widespread build-out happening industry-wide, there is speculation that Google's FY2026 capital expenditure guidance of $75 billion could trend higher. The consensus among analysts is that FY2026 EPS estimates might see positive revisions based on Q2 2025 results. Yet, significant outperformance in the shares may not materialize before the anticipated antitrust ruling in August.

Alphabet's ongoing initiatives, such as the expansion of Waymo, its autonomous driving subsidiary, into Austin indicate its commitment to leveraging technological advancements in self-driving technology. This expansion aims to enhance its urban transport offering within the city, further signifying Google's innovative stride in diversifying technological applications.

On the financial front, Google A (GOOGL) has notably advanced across eight consecutive trading days, with the stock closing at $185.06 on July 18, 2025. This marks a 0.81% increase for the day and a 2.70% rise over the last five trading sessions. Since the start of July, Google’s stock has shown a cumulative gain of 5.01%. However, it has experienced a 2.24% decline year-to-date, reflecting the broader market dynamics over the past 52 weeks with a 4.17% increase.

BMO Capital remains optimistic about Alphabet's stock, reaffirming an outperform rating with a target price of $208.00 on July 15, 2025, which underscores confidence in the company's resilient market positioning amidst the technological evolution. These strategic and financial undertakings underscore Alphabet’s robust adaptive strategies in integrating cutting-edge advancements across its diverse suite of subsidiaries and operations, which include Google, Calico, GV, Google Capital, and Google Fiber.