---
title: "Alphabet Set To Gain From Google AI Innovation, 'Underappreciated' YouTube: Goldman Sachs"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/242808087.md"
description: "Goldman Sachs analyst Eric Sheridan maintains a Buy rating on Alphabet Inc, with a price target of $220. He believes Alphabet is well-positioned for the AI era, projecting Google's Search revenues to grow from $198 billion in 2024 to $318 billion by 2030, an 8% CAGR. YouTube is seen as an undervalued asset, with expected revenues reaching $99 billion by 2029, growing at a 13% CAGR. Despite a 1.8% decline in shares to $168.59, the overall outlook remains positive."
datetime: "2025-06-02T15:45:59.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/242808087.md)
  - [en](https://longbridge.com/en/news/242808087.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/242808087.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/242808087.md) | [繁體中文](https://longbridge.com/zh-HK/news/242808087.md)


# Alphabet Set To Gain From Google AI Innovation, 'Underappreciated' YouTube: Goldman Sachs

While investors seem concerned about the value of **Alphabet Inc**'s GOOG GOOGL Google Search, the company appears "strategically well positioned for the AI era of consumer internet," according to Goldman Sachs.

**The Alphabet** **Analyst:** Analyst Eric Sheridan reiterated a Buy rating and price target of $220.

**The Alphabet Thesis:** Revenues generated by Google's Search & Other segment could grow from around $198 billion in 2024 to about $318 billion in 2030, representing an 8% CAGR (compounded annual growth rate), Sheridan said in the note.

**Check out other analyst stock ratings.**

Although the Search segment could experience some margin pressure in the coming years, its current GAAP EBIT margin is around 55%, he added.

The analyst considers YouTube an "underappreciated consolidated asset inside Alphabet's structure with the potential for compounded growth (driven by a mix of ad supported an increasing tilt toward subscription supported revenue) and slightly rising operating margins."

YouTube's total revenues could grow at a five-year CAGR of around 13%, reaching about $99 billion in 2029, Sheridan said.

"On the back of our analysis, we assign a segment enterprise valuation for YouTube of ~$475 billion," he further wrote.

**GOOGL Price Action:** Shares of Alphabet had declined by 1.8% to $168.59 at the time of publication on Monday.

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_Photo: Shutterstock_

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