China Securities Co., Ltd. pointed out in a report that Alphabet's two main lines this year are organizational structure optimization and operational efficiency improvement, as well as AI's enhancement of advertising or cloud business efficiency. The second-quarter performance continued to demonstrate good OpEx and gross margin rate, but in the third quarter, the profit margin optimization is expected to slow down due to depreciation and the early release of Pixel, although it is still better than the 2023 level. Regarding the empowerment of AI, Alphabet's management emphasized FOMO sentiment and the risk of underestimating investments in the Q&A session, which means that AI CapEx may continue or even increase in intensity, but the return on investment for AI products is small and still in the early stage of AI empowerment products.

The bank pointed out that considering the sharp rise in Alphabet's stock price since the first quarter results were released, the fundamentals have basically been realized, and the risk-return ratio for the future has decreased compared to the attractiveness in the first quarter, but it still maintains an optimistic outlook, with a "buy" rating and a target price of $200.