Alphabet (GOOGL, Buy, $295 target) AI Search vs ChatGPT dominates, but Cloud beginning to push through
Ahead of earnings next Wednesday, we review the top controversies for the stock – starting with AI Search vs ChatGPT -- and how investor sentiment is evolving post DOJ Search remedies, including how Cloud and TPUs are increasingly supporting GOOGL’s “AI winner” narrative.On the back of yesterday’s confirmation of an expanded relationship with Anthropic (and another Quantum breakthrough), we are raising our target to $295 from $275 on higher target multiples as we see Cloud increasingly supporting valuation.
Alphabet is a holding company. Through its subsidiaries, the company is engaged in a collection of businesses, which its primary business is Google. The company reports all non-Google businesses collectively as Other Bets. Google's main products and platforms are Android, Chrome, Gmail, Google Drive, Google Maps, Google Play, Search, and YouTube. The company also provides advertisers with tools that help them attribute and measure their advertising campaigns. In addition, Other Bets includes Access, Calico, CapitalG, GV, Verily, Waymo, and X, among others. Other Bets primarily engages in the sales of internet and TV services through Access as well as licensing and research and development services through Verily.
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