Alphabet (GOOGL) stock is receiving mixed reviews from Wall Street, with JMP Securities downgrading the stock to Hold from Buy while Wolfe Research reiterated a Buy rating on the stock and increased the price target from $220 to $230 (upside potential of 21.4%). GOOGL stock has risen 37% over the past year, thanks to artificial intelligence (AI)-related tailwinds. However, regulatory pressures have been a matter of concern for investors.
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JMP and Wolfe Have Differing Views on GOOGL Stock
Analyst Andrew Boone downgraded GOOGL stock due to the risk of antitrust penalties that could have a significant impact on Google’s U.S. distribution of search and search revenue. With a final ruling in the antitrust litigation expected by August 2025, JMP expects the case to be a major focus for GOOGL investors that could limit the expansion in the stock’s multiple.
The analyst is concerned that the court’s decision will “be severe,” especially as European regulators were unable to impact the search market. Boone believes that shares are fairly valued at current levels. He awaits more clarity on the legal front before turning positive again on GOOGL stock.
Meanwhile, Wolfe Research’s Shweta Khajuria raised the price target on GOOGL stock as part of the 2025 outlook for the internet group. The analyst expects 2025 to be another favorable year for internet stocks but not to the same extent as 2023 and 2024, given current multiples. Khajuria sees the possibility of upside to the estimates based on product-related catalysts, comparatively healthy macro conditions, and successful capital allocation.
Is GOOGL Stock a Good Buy Now?
Overall, Wall Street is bullish on Alphabet stock, with a Strong Buy consensus rating based on 23 Buys and seven Holds. The average GOOGL stock price target of $212 implies about 12% upside potential.
