Glonghui, Feb. 2 | Bank of America Securities published a research report saying that Google's parent company Alphabet's revenue and earnings per share beat expectations for the last quarter, mainly driven by growth in Google Cloud and subscription services, and reduced tax expenses. Growth in all major businesses accelerated year-on-year during the period. However, the search engine business fell short of expectations. Coupled with a sharp increase in capital expenses, it is believed to have a negative impact. Bank of America lowered its 2024-2025 revenue forecast to $289.092 billion and $321,615 billion, and added the 2026 revenue forecast to $354.75 billion, with earnings forecasts per share of $8.51, 9.67, and $10.84, respectively. The bank said that the revenue and earnings per share forecast for the first quarter of 2024 remained largely unchanged, while the capital expenditure forecast for the full year was raised to US$45 billion. As the growth of all major businesses accelerates and the AI asset base led by generative AI integration, it is believed that Alphabet will be the beneficiary of AI development, slightly lowering the target price from $175 to $173, and reaffirming the “buy” rating.