'It's Better Than Feared,' Says Top Analyst About Alphabet Stock (GOOGL)

Just a few months ago, investors worried that AI would weaken Alphabet's (GOOGL) grip on search. Now, that concern is starting to fade. Top Citizens Analyst Andrew Boone raised his price target on Alphabet to $385 from $340 and reiterated a Buy rating, arguing that search is not only holding up, it's gaining momentum again. It is worth noting that Boone ranks 240 out of more than 10,000 analysts tracked by TipRanks and has a success rate of 59%.Claim 70% Off TipRanks This Holiday SeasonUnlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential The call comes after a sharp rally in the stock. Boone said Alphabet's shares have already more than doubled from their May lows, prompting the firm to revisit its estimates. Even so, he believes the rally is backed by real improvement in the business, not just sentiment. Notably, GOOGL stock is up about 66% year-to-date. Why Alphabet's Search Story Isn't Over The key question in the near term is whether search revenue can accelerate further in the fourth quarter of 2025, with Alphabet expected to report its results on February 3, 2026. Boone thinks it can, as AI features are driving more user engagement instead of pulling traffic away. In particular, tools such as AI Overviews, AI Mode, and Gemini are encouraging users to ask more questions and stay longer within Google's ecosystem. That rise in activity is helping push query growth higher, supporting the core ad business. At the same time, Boone pointed to Smart Bidding Exploration, which helps advertisers connect with user intent rather than just keywords. This shift allows Google to attach ads to more searches without hurting relevance, effectively expanding ad inventory. The third quarter was the first full period with this tool in place, and Boone expects similar benefits in the fourth quarter. Stable holiday spending trends should add further support for search advertising. Looking ahead, Citizens sees Gemini, Cloud, Waymo, and TPUs as drivers that could help results improve into 2026 and 2027. Is GOOGL a Buy or Sell Stock? According to TipRanks, GOOGL stock has a Strong Buy consensus rating based on 27 Buys and seven Holds assigned in the last three months. At $327.42, the Alphabet average share price target implies almost 4.32% upside potential.