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Key Takeaways
- Alphabet, Google’s parent company, will report its first-quarter earnings after the close of the market on Thursday.
- A majority of analysts tracked by Visible Alpha have a "buy" or equivalent rating for the stock.
- Citi analysts predicted that Google Search will be “among the final platforms to experience macro impact and among the first platforms to recover.”
Google parent Alphabet is scheduled to report its first-quarter results Thursday after the market closes. Analysts are largely optimistic about the tech giant’s abilities to weather economic uncertainty.
Citi analysts have recently stated that they expect Google Search will be “amongst those platforms that experience macro impact and amongst those first to recover.” Citi also highlighted their potential for growth through the adoption of artificial-intelligence tools like Google’s AI Mode, as well as its latest iteration Gemini large language models.
Morgan Stanley cited “AI driven platform-level innovations” on Search and YouTube, as a reason to “confidence in the durability of growth over the long term.” Citi and Morgan Stanley have set Alphabet’s price targets to $195 and $185.
Visible Alpha’s 19 analysts who cover Alphabet have 14 “buy” or similar ratings, while the rest issue “hold” ratings. Their consensus price target near $195 would suggest roughly 29% upside from Thursday's closing price at about $151.
Alphabet’s earnings call could include questions from analysts regarding a U.S. District Court decision that Google has illegally monopolized the online advertising market. Citi analysts said that they “wouldn’t be surprised” to see Google spin off its ad networks as a result. However, Google’s core business would not be affected.
Alphabet will report fiscal first-quarter revenues of $89.22 billion. This is an 11% increase over the previous year. The net income is expected to be $24.71 billion or $2.01 a share.
Alphabet shares have lost a quarter of their value in 2025, as of Thursday’s closing. The U.S. stock exchange was closed for Good Friday.
