Guggenheim believes that Alphabet has room to run higher. The investment firm raised its 12-month price target for the parent company of Google to $375 per share from $330, signaling a gain of 17% from Friday’s close. It also maintained its buy rating on the stock. Analyst Michael Morris reiterated his belief that next year, the most scaled companies in his coverage are the best positioned to drive investor returns and outsized growth. GOOGL YTD mountain GOOGL YTD chart “We expect Alphabet to outperform consensus estimates and see additional relative multiple expansion on further investor confidence that artificial intelligence-driven changes in the business, advertising and consumer marketplaces are expansion opportunities,” he wrote. The analyst pointed to three major catalysts going forward for Alphabet, with the first stemming from “exceptional cloud backlog growth supported by surging enterprise AI demand.” In fact, the analyst cited upward revisions to Google Cloud segment revenue as a primary reason for him raising his 2026 and 2027 revenue and profit estimates for Alphabet. “While we believe that the company’s recent share appreciation reflects positive sentiment on these themes, we see a plausible bull case at Cloud that would indicate consensus under-appreciates run-rate revenue potential by ~ $40bn based on backlog growth,” Morris added. The analyst also pointed to YouTube’s sustained dominance in streaming viewership alongside “structural viewership gains.” More importantly, YouTube’s monetization of this viewership is accelerating through avenues such as YouTube Shorts, which now earn more revenue per watch hour than traditional in-stream rates, he said. Morris also believes that Google Gemini can keep its status as a top AI platform going forward. Since its release last month, Gemini 3.0 has been met with “overwhelmingly positive reception,” with total Gemini monthly active users have swelled to 650 million from 350 million in March. “Management reported that over 85,000 enterprises build with Gemini, driving 35x growth in Gemini usage y/y as of 2Q, with over 230mm videos generated using Veo 3,” he wrote. “We believe this combination of consumer momentum and enterprise adoption positions Gemini to drive meaningful revenue contribution through Google Cloud, Workspace integration, and enhanced search capabilities in 2026-2027.” Shares of Alphabet have surged 74% in 2025.
