Morgan Stanley’s Alphabet analysis and pricing points to a promising 29% upside potential as the tech giant gets ready for its first-quarter earnings report this Thursday. The well-known investment bank is definitely maintaining its bullish stance right now amid the broader market volatility, setting a price target of $185 while, interestingly enough, other analysts are projecting even higher gains for Google’s parent company at this time.
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Will Alphabet Earnings Match Morgan Stanley’s Bold Forecast?
Analysts Bullish on Alphabet
Morgan Stanley’s Alphabet coverage comes with strong backing from other financial institutions as well. Of the 19 analysts currently tracked by Visible Alpha, 14 have issued “buy” or equivalent ratings for the stock, with the remaining five maintaining “hold” ratings. Their consensus price target near $195 suggests roughly 29% upside from Thursday’s closing price at $151.
Morgan Stanley cited:
“AI-driven platform-level innovation on Search and YouTube as a reason for confidence in the durability of long term growth.”
Citi analysts also expressed optimism about Google’s position in their recent report:
“Google Search would be among the last platforms to experience macro impacts and among the first to recover.”
Earnings Expectations
Alphabet earnings projections show fiscal first-quarter revenue possibly reaching $89.22 billion, an 11% year-over-year increase. The Morgan Stanley Alphabet price target stands at $185, while Citi actually gave a somewhat higher target of $195. Expected net income is approximately $24.71 billion ($2.01 per share), compared to last year’s $23.66 billion ($1.89 per share).
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Challenges Ahead
Despite positive tech stock forecast outlooks for the company, Alphabet shares have already lost nearly 20% of their value so far in 2025. The recent antitrust ruling regarding Google’s advertising monopoly also poses additional uncertainty for investors and analysts alike.
Citi analysts noted in their report:
“We wouldn’t be surprised to see Google ultimately spin off its ad network.”
Google’s Q1 earnings in 2025 will certainly be closely watched for any commentary on this particular regulatory challenge and also AI implementation progress, particularly regarding the new Gemini language model that was launched recently.
Investment Implications
The Morgan Stanley-Alphabet relationship highlights some potential opportunities despite the obvious challenges. As one of about 120 S&P 500 companies reporting earnings this week, Google’s Q1 earnings in 2025 performance could definitely influence broader market sentiment in the days ahead.
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Alphabet earnings and tech stock forecast data suggest continued growth potential in digital advertising and AI development, though regulatory hurdles remain a concern at the moment. As Thursday’s announcement approaches, investors will be watching closely to see if the actual results match Morgan Stanley’s confidence and how management plans to address future growth strategies during the earnings call.