BofA Reiterates Buy on Alphabet (GOOGL) as Gemini Gains Traction and KPIs Hold Steady

Alphabet Inc. (NASDAQ:GOOGL) is one of the Top AI Stocks Taking Wall Street by Storm. On August 5, BofA Securities analyst Justin Post reiterated a Buy rating on the stock with a $217.00 price target amid Google’s stable KPIs.

As per the firm, Google’s key KPIs have been stable in July despite artificial intelligence adoption growing across several sites, including its own Gemini.

“Google’s key KPIs (traffic, search share, & mobile DAUs) were relatively stable in July, despite rapidly growing AI adoption across several sites, including Gemini. Data suggests AI-driven usage appears incremental, with growing adoption complementing, rather than significantly altering existing search activity.”

The firm is encouraged by the growing App usage and Gemini traction, noting how the Street may be underestimating AI-driven upside potential for Google search and YouTube monetization.

Photo by Kai Wenzel on Unsplash

“Also, we are encouraged with growing Google App use (vs Browser) and Gemini traction, 450mn reported MAUs in July (vs 400mn in May). We think Street could be underestimating AI driven upside potential for Google search and YouTube monetization. Reit Buy. Next Alphabet catalyst: DOJ Search remedy ruling (expected in August).”

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

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