Alphabet’s Google stock (NASDAQ: GOOG) opened Thursday’s trading session at $355. The search giant is facing headwinds as its price is unable to sustain at the $400 level. It went from $273 to $408 from March to May, and then slid to $355 in June. Sell-offs and profit bookings, along with global macroeconomic factors, led the equity to a steep fall. However, on the heels of the downturn, leading investment bank Needham has maintained its buy rating for Google stock.
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Google Stock Price Prediction: Needham’s Latest Target
Needham’s senior stock analyst Laura Martin maintained her buy call in a note to clients on June 3. According to the strategist, taking an entry position in Google stock at this point could be beneficial as it is down to monthly lows. She explained that the search giant could see a breakout in value soon and breach the $400 level. This makes an entry position at this level extremely profitable when the price recovers.
The Needham analyst predicts that Google stock could reach a new high of $450 next. That’s the most bullish price prediction received for GOOG, as the maximum high of $445 came from Piper Sandler. Needham has gone further in its forecast and is now the most bullish Wall Street firm on Alphabet’s prospects. The third bullish forecast comes from Truist Financial, with a projection of $430.
If Needham’s price prediction on Google stock turns out to be accurate, traders can expect returns of approximately 27%. Therefore, an investment of $1,000 could turn into $1,270 if the estimates reach the target. Alphabet is on a fundraising spree to power up its AI spending with an $80 billion offering. Warren Buffett’s Berkshire Hathaway is also investing in the offering to fund the company’s AI plans. Therefore, institutional funds remain heavily invested in Alphabet, as they are confident that the company will deliver the desired results.
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