Why Morgan Stanley Thinks Alphabet’s (GOOGL) Innovation Cycle Isn’t Priced In Yet

Alphabet Inc. (NASDAQ:GOOGL) is one of the AI Stocks Making Waves on Wall StreetOn July 24, Morgan Stanley reiterated the stock as “Overweight” and raised its price target to $210 per share from $205 following Alphabet’s latest earnings report on Wednesday.

Analyst Brian Nowak is optimistic about Google’s accelerating cloud revenue growth and its updated AI-based engagement metrics.

“Search, YouTube and Google Cloud all accelerated as GenAI-enabled innovation is driving faster growth,” he wrote in a Thursday note to clients. “Our EPS ests are largely unchanged (revenue higher offset by higher D & A/investment) but we remain OW as this accelerated pace of innovation sets up GOOGL for more durable multi-year growth.”

Why Morgan Stanley Thinks Alphabet’s (GOOGL) Innovation Cycle Isn’t Priced In Yet

A business person pointing to a graph displaying a company’s projected EBITDA growth.

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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Disclosure: None.