"" Rosenblatt Initiates Alphabet Stock Coverage with Buy Rating
Investment firm Rosenblatt has initiated coverage on Alphabet Inc. (NASDAQ:GOOGL) with a buy rating, setting a price target of $410. The firm believes the company's position as a leading hyperscaler in the artificial intelligence cycle will sustain momentum and support multiple expansion as operating profit scales ahead of current expectations.
Key Points
- Alphabet trades at a P/E ratio of 17.3 with a remarkably low PEG ratio of 0.15
- Revenue growth stands at 20%
- Cloud will sustain momentum and support multiple expansion
- Deceleration in cloud growth would pressure the thesis more than any new search risk
Analyst Commentary
Rosenblatt cited the company's role in AI infrastructure and its re-rating from search concerns as the primary drivers of its buy rating. The firm believes that Alphabet's cloud business will continue to grow and support multiple expansion, with capacity and TPU monetization expected to occur past 2027.
Recent Developments
Meanwhile, Marvell Technology has entered into a significant custom silicon agreement with Google, which includes warrant provisions. Morgan Stanley analysts have highlighted that the summer of 2026 might be defined by substantial developments in AI financing, with major companies like Alphabet expected to increase their capital expenditures significantly in 2027.
Additional News
- YouTube is in advanced discussions with the NBA to create a streaming hub for local team broadcasts starting in the 2027-28 season, with a potential deal valued at over $1 billion.
- Google has successfully won a bankruptcy auction to acquire Spirit Airlines’ business data for $10 million.
- Marvell has issued Google a warrant to purchase up to 58.97 million shares at $206.58 per share as part of the arrangement.
- Stifel estimates that this deal could potentially generate up to $120 billion in cumulative revenue for Marvell over approximately 6.5 years.
Categories: [bitcoin, ethereum, markets, defi-news, regulation, nfts, altcoins, mining, exchanges, security] Tags: [alphabet, google, cloud, ai, marvell, spirit airlines, youtube, nba] image_prompt: bold graphic of a cloud with a growth chart in the background, depicting Alphabet's sustained cloud momentum and growth prospects.
