Alphabet Stock Soars! Is Google Headed for a New All-Time High?

By: Analia Gómez Published On: 28/07/2025

Finance Finance Finance Finance Finance

Alphabet (GOOGL) is making waves after a strong earnings report that has analysts scrambling to update their price targets. Investors are feeling bullish about Google again, driven by impressive performance across key sectors.

Earnings Beat Expectations

The tech giant reported earnings of $2.31 per share on revenue of $96.43 billion, surpassing Wall Street's forecasts. This positive momentum is largely attributed to strong growth in search, advertising, and cloud services.

Search revenue reached $54.19 billion.
Total ad revenue climbed 10% year-over-year to $71.34 billion.
YouTube ads generated $9.8 billion, exceeding expectations.

Cloud Growth a Major Catalyst

Alphabet's cloud division was a standout performer, with revenue surging 32% to $13.62 billion. The company's strategic partnership with OpenAI to power ChatGPT using Google Cloud is further fueling this growth.

Alphabet has also significantly increased its capital spending forecast for 2025 to $85 billion, up from $75 billion in February. This investment reflects the company's confidence in the growing demand for its cloud products and services. CFO Anat Ashkenazi anticipates further increases in spending in 2026.

Stock Performance and Analyst Upgrades

The positive earnings report has propelled Alphabet's stock closer to its all-time high. Shares closed at $194.08 on July 25, marking a gain of over 13% in the past month. This upward trend mirrors a broader rally in tech stocks, driven by optimism surrounding AI and cloud technologies.

However, it's worth noting that Alphabet's stock performance year-to-date is still lagging behind the market, with a gain of 1.91% compared to the S&P 500's 8.62% increase.

Analyst Opinions Vary

Following the earnings beat, numerous Wall Street analysts have raised their price targets for Alphabet. Bank of America analyst Justin Post increased his target to $217 from $210, maintaining a buy rating. However, opinions differ on the extent of potential future gains, suggesting a nuanced outlook on Alphabet's prospects amid regulatory and competitive challenges.