Overview

• Andrew Boone of Citizens JMP upgraded Alphabet to Market Outperform with a $220 price target, citing AI Overviews’ 10% query growth in testing as a catalyst for mid-single-digit growth.
• Boone forecasts AI Overviews monthly active users will rise from 1.5 billion in Q1 to about 4 billion by Q3, covering two-thirds of all search queries.
• Jefferies maintained its Buy rating and $210 target, pointing to Alphabet’s 11x forward-12-month EV/EBITDA valuation versus a 10-year average of 12.4x and a record 40% operating margin in Q1.
• Google Search retains roughly 90% market share against competitors like ChatGPT, while YouTube remains undervalued despite generating around 30% more revenue than Netflix.
• Google Cloud Platform is seen as primed for expansion on the strength of Alphabet’s AI infrastructure tools and potential federal contract wins.