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Bullish investors in Alphabet may rejoice, once again. Credit Suisse raised its stock price target for GOOGL and GOOG (Class A and Class C shares respectively) to $1,350. Previously, the price target was set at the $1,100 level. The revision is due to the growing earning prospects of Alphabet. Wells Fargo has recently assigned a $1,250 price target to the named shares, however, Credit Suisse turned out to be even more generous in their estimates.

General bullish trend and reaction to annual event (marked in yellow)

While the S&P 500 has gained 14 percent in 2017, Alphabet shares appreciated 24% during the same period. Growing mobile traffic, higher cost-per-click and intensive use of location-based targeting in retail sector are the main drivers of the recent growth. “Our conversations with advertisers suggest minimal search budget growth deceleration coupled with potentially accelerating spend on YouTube,” says Stephen Ju, a well-known Credit Suisse analyst. “We continue to believe that the opportunity for YouTube to become a significantly larger revenue contributor is still largely ahead of us.”

Alphabet may also be the only tech giant to invest in all the major technologies of the future. AI, self-driving automobiles, smartphones and smart speakers — Google got ‘em all. Not a major source of revenue yet, these fields can potentially transform the Alphabet business model and offer much more than the position of the global search engine leader. Should the company demonstrate good enough performance, GOOG and GOOGL shares can be expected to continue their upward rally.

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NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future


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