According to a research report published by Morgan Stanley, although Alphabet's capital expenditure has increased, it is expected to drive the development of generative artificial intelligence, endogenous growth in cloud and subscription service revenue, and maintain an “incremental” rating. The target price was raised from $150 to $165. Search engine business performance in the fourth quarter of last year fell slightly short of expectations. Accordingly, Damo lowered its 2024 and 2025 search revenue forecasts by 4% and 6.5%, while revenue growth expectations for subscription services and cloud services will help offset some of the impact, leaving revenue falling by only 1% and 2% this year and next two years. Damo also predicts that Google's EBIT will increase by 3% and 2% this year and next two years, keeping the 2025 free cash flow forecast unchanged at 106 billion US dollars.