Raymond James Upgrades Alphabet (GOOGL) to Strong Buy on AI-Driven Growth

Raymond James has upgraded Alphabet Inc. (GOOGL) stock to "Strong Buy," citing the company's robust AI integration and accelerating growth in Search and Cloud. The brokerage firm highlights Alphabet's full-stack AI strategy, which is driving stronger engagement and revenue across its core businesses. With a projected $400 price target, GOOGL is seen as one of the most compelling large-cap growth opportunities, particularly as AI Overviews and Gemini models enhance monetization and user interaction. Alphabet's third-quarter results surpassed expectations, with revenue rising 16% YoY to $102.3 billion, driven by strong performance in Google Services and a 34% surge in Google Cloud revenue. Operating income climbed 9%, reflecting tight cost control despite a significant antitrust fine. Analysts anticipate continued growth, projecting 2027 revenue ahead of market estimates, supported by AI advancements and expanding cloud infrastructure. GOOGL remains firmly in an uptrend, with recent technical indicators suggesting consolidation rather than weakness, reinforcing its position as a leading AI-driven tech giant.