Alphabet (GOOG) is rated a “Buy” with a 46% upside to a $455 price target, despite recent stock weakness driven by increased capital expenditure. The company’s Google Cloud revenue saw a 48% year-over-year surge in Q4, and its aggressive AI investments are expected to contribute significantly to profitability. Concerns regarding CAPEX and bond issuance are considered overblown, given GOOG’s strong free cash flow, substantial liquidity, and robust demand for its debt.
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Alphabet: The CAPEX Shock Is A True Gift (NASDAQ:GOOG)
Alphabet (GOOG) is rated a “Buy” with a 46% upside to a $455 price target, despite recent stock weakness driven by increased capital expenditure. The company’s Google Cloud revenue saw a 48% year-over-year surge in Q4, and its aggressive AI investments are expected to contribute significantly to profitability. Concerns regarding CAPEX and bond issuance are considered overblown, given GOOG’s strong free cash flow, substantial liquidity, and robust demand for its debt.