Alphabet (GOOGL) Poised To Deliver Modest Earnings Beat, Says Evercore ISI

Alphabet Inc. (NASDAQ:GOOGL) is one of the AI Stocks Analysts Are Tracking CloselyOn July 21, Evercore ISI reiterated an Outperform rating on the stock with a price target of $205.00. The rating affirmation comes ahead of the company’s second-quarter earnings report, due July 23.

According to the research firm, Alphabet is poised to deliver a “modest beat” for the second quarter of 2025. The firm’s advertising channel checks throughout the quarter have been incrementally positive, with overall budgets increasing despite April fluctuations due to tariff headlines and early Easter shift.

The firm further highlighted that Street expectations of a 28% year-over-year Cloud growth are reasonable, though there is a risk that tight GPU supply may create quarterly volatility until new capacity is available in late 2025.

Alphabet (GOOGL) Poised for Earnings Beat as Analysts Cite Strength in Ads and Cloud

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Street’s forecast of 32.8% operating margin is also seen as fair, particularly based on product mix and owing to management’s expectations for depreciation to grow faster through fiscal year 2025.

Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.

While we acknowledge the risk and potential of GOOGL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GOOGL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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