Google’s Alphabet stock (NASDAQ: GOOG) is struggling to climb above the $400 level this month. After seeing a remarkable rally from $273 to $403, the search giant now remains rangebound in the charts. The slump is mostly due to sell-offs, as investors are initiating profit bookings. The selling price is mostly set at the psychological level of $400, making GOOG unable to sustain above this range.
On the heels of the price stagnation, capital markets and financial advisory group Citizens JMP has provided the most bullish price target for Google stock. The target goes above the $500 mark, making it a prime investment even if GOOG is at $400. This makes the search giant a must-watch in the market, as it comes with a massive upside potential.
Also Read: Amazon Stock New Price Target $350 (AMZN)
Citizens JMP Predicts Google Stock To Reach $515
Andrew Boone, Citizens JMP’s stock market analyst, wrote in a note to clients that Google stock could reach $515. That’s an uptick and return on investment of approximately 30% from its current price of $397. Therefore, an investment of $1,000 could turn into $1,300 if the price target turns out to be accurate. That’s stellar returns, as not every asset in the US market delivers double-digit gains.
This is a street-high price prediction that can bring in top profits for traders. The analyst noted Alphabet’s aggressive penetration in the AI sector by selling custom-made chips to clients. It already has a backlog of $462 billion, making Google stock a prime investment for the next five years. An investment below $400 can set the stage for bigger returns in the next 10 years.
The long-term prospects for Google stock remain robust, due to Alphabet’s evolving features. Alphabet is positioning itself outside the search giant box to become a leader in the AI chip segment. This could take the company to new heights in the next decade as it sheds its old skin to embrace the new.