Analysts and Institutions Continue to Bet Big on Alphabet

Core Viewpoint - Despite facing significant challenges in 2025, Wall Street and institutional investors maintain strong confidence in Alphabet, indicating a potential turning point for the company [1][2]. Stock Performance - Alphabet's stock has declined nearly 13% year-to-date but has rebounded over 9% in the past week, suggesting a possible short-term bottom around $150 [2]. - The stock is currently trading at$163.96, with a price target of $199.75, representing a 21.83$10.47 billion last quarter, driven by increased subscriptions and user engagement [6]. - Google Cloud is gaining traction with enterprise adoption of AI-powered solutions, indicating growth beyond traditional search and ads [6]. Analyst Sentiment - Analysts view Alphabet's current valuation as attractive, with a forward P/E of 16.25 compared to a historical average of 28 [8]. - The stock holds a consensus rating of Moderate Buy, with 30 analysts issuing Buy recommendations [9]. Institutional Investment - Over the past twelve months, Alphabet has seen $96.4 billion in institutional inflows, indicating strong institutional support despite recent stock performance [10][11]. - Notably, Baupost Group increased its stake in Alphabet by 45.72% in Q1 2025, reflecting high conviction in the company's future [12]. Long-term Growth Drivers - Alphabet's robust underlying business, including its dominance in search, expanding cloud operations, and aggressive AI initiatives, positions it for multiple long-term growth drivers [13].