Alphabet (NASDAQ:GOOGL) stock gained about 58% in 2023. While shares of the technology giant witnessed stellar growth, analysts’ stock price forecast for GOOGL suggests limited upside potential over the next 12 months.
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Nonetheless, GOOGL stock is analysts’ top pick in the big tech space, thanks to its growing AI (Artificial Intelligence) capabilities. Also, Alphabet is Needham analyst Laura Martin’s one of the “Top 2 FAANG picks for 2024.” The analyst expects GOOGL to benefit from a rebound in ad spending and investments in generative AI.
Martin maintained a Buy recommendation on GOOGL stock with a price target of $160 on December 22. With this backdrop, let’s understand what the Street recommends for Alphabet stock.
What is the Prediction for Alphabet Stock?
Alphabet is incorporating AI into its offerings, including Search and Cloud, which will likely accelerate its growth. Additionally, Monness analyst Brian White anticipates that GOOGL is well positioned to capitalize on the improving digital ad trend. Further, the analyst expects the company to command a dominant position in the cloud space and profit from digital transformation and an efficient cost structure.
However, the analyst reiterated a Hold recommendation on GOOGL stock on December 26, citing regulatory headwinds and heightened competitive activity.
With 27 Buys and six Holds, Alphabet stock has a Strong Buy consensus rating. Further, analysts’ average GOOGL price target of $154.73 implies 11.38% upside potential from current levels.
Bottom Line
Alphabet is likely to benefit from the rebound in spending on digital advertising. Further, GOOGL’s AI innovations, expansion of cloud business, lean cost structure, and leadership in Search will support its financials. Nevertheless, given the significant increase in the stock’s value over the past year, analysts’ average price target suggests limited upside potential.
