Not so long ago, there were concerns that the souring economy would put a crimp in online advertising. That’s not without reason; after all, who stages an ad blitz when everyone’s watching their wallets like a hawk? However, there are signs of a comeback, and tech giant Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) is making a comeback of its own in response, up over 2% in Thursday afternoon’s trading.
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Interestingly, it wasn’t a general surge in online ad spending. Instead, it was one particular advertiser going on an absolute spree. That ad buyer was none other than Temu, the e-commerce platform of Pinduoduo (NASDAQ:PDD).
While Temu may not have the best reputation—ZDNET recently offered a list of things that shoppers should do before setting foot on Temu’s website—it’s certainly bringing in cash for Alphabet. Not only Alphabet, either; Temu reportedly dropped a whopping $2 billion on ads with Meta Platforms (NASDAQ:META), which had to be a welcome development.
Is Google a Safe Long-Term Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 29 Buys and eight Holds assigned in the past three months, as indicated by the graphic below. After a 42.74% rally in its share price over the past year, the average GOOGL price target of $164.59 per share implies 22.05% upside potential.
