Cantor Fitzgerald Reiterates Neutral Rating on Alphabet (GOOGL)

Cantor Fitzgerald analyst Deepak Mathivanan reiterated a Neutral rating and $201.00 price target on Alphabet (NASDAQ: GOOGL).

The analyst commented, "Over the last three weeks, since the remedy ruling in the search Antitrust trial, GOOGL has made several strategic product launches and integrations that we believe should enable accelerated adoption and usage for its key AI experiences. Notably, GOOGL announced Gemini integration directly into Chrome for Mac and Windows desktop users. Mobile iOS Chrome users will see Gemini on the browser soon. With over 4B MAUs and 70% market share on desktops, Chrome has historically been a powerful distribution channel for GOOGL offerings. Chrome accounts for ~35% of total search revenue overall. This integration brings advanced AI experiences of Gemini, including agentic browsing, context search, and cross tab interactions, to search users directly from the Chrome browser. The discovery of the Gemini icon on the browser is still less than ideal, but we expect GOOGL to merchandise Gemini on Chrome aggressively – which should help adoption. Gemini MAU still represents <10% of the total Chrome MAUs. Additionally, recent data from OpenAI indicates an average WAU performs ~3.5 queries daily on ChatGPT, consistent with the average of ~3 search queries on GOOGL search worldwide (ex-China) – which indicates that AI assistants could achieve search type of engagement or higher over time. As such, we think GOOGL is well positioned to see search query acceleration over next few quarters from several factors, including coverage growth of AI overviews and Gemini integrations inside existing apps."

For an analyst ratings summary and ratings history on Alphabet click here. For more ratings news on Alphabet click here.

Shares of Alphabet closed at $251.66 yesterday.

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