Goldman Sees Limited Downside in Alphabet (GOOGL)

On May 30, a Goldman Sachs analyst reiterated a bullish stance on Alphabet Inc. (NASDAQ:GOOGL), maintaining a Buy rating and a $220 price target. According to the analyst, Alphabet’s current valuation already reflects a degree of investor pessimism, implying limited downside risk from current levels. He believes that this presents a favorable risk/reward opportunity for long-term investors.

He remains optimistic about Alphabet’s growth and forecasts a steady increase in Google’s Search and Other revenue, projecting growth from approximately $198 billion in 2024 to around $318 billion by 2030.

Beyond this solid growth outlook, he also believes that the market continues to overlook Alphabet’s long-term structural advantages. Among such advantages, he highlights the company’s scale in AI deployment, its ability to deliver personalized experiences by harnessing first-party data across its ecosystem, and its expansive infrastructure footprint as key differentiators that could support sustained outperformance over the long term.

That said, concerns have been raised in recent years about Google’s dominance in the search industry, particularly with the emergence of generative AI.

However, Colin Sebastian, an analyst at Baird, recently highlighted that Alphabet’s continued innovation in search capabilities reinforces his positive outlook on the stock. Despite macroeconomic pressures and increasing competition, he believes Alphabet’s new ad products and agentic capabilities will enhance monetization and drive further revenue growth. Sebastian maintains an Outperform rating on the shares with a $190 price target.

Alphabet Inc. (NASDAQ:GOOGL) is the parent company of Google and a pioneer in internet-related services and products, including online advertising technologies, search engines, cloud computing, software, and hardware.

While we acknowledge the potential of GOOGL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GOOGL and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.