Goldman Sachs released a research report stating that Alphabet's second quarter performance showed strong search and other businesses, better than Goldman Sachs and market expectations. Cloud business revenue growth accelerated, and operating profit margins benefited from the healthy development of the cloud computing market and AI trends. However, its YouTube advertising business will face increasingly tough market competition.
Looking ahead to the third quarter, the bank lowered its total revenue forecast from $86.44 billion to $86.09 billion, EBITDA forecast from $29.91 billion to $28.74 billion, and earnings per share are expected to reach $1.8. For the full year, Goldman Sachs currently expects revenue to reach $347.94 billion in 2024, higher than the previous forecast of $347.57 billion, with EBITDA reaching $120.99 billion and full-year EPS reaching $7.66.
With the vision that Alphabet can maintain its position as the leader in AI, Goldman Sachs reiterated its 'buy' rating with a target price raised from $211 to $217.