In line with the company’s exceptional results in the first half of 2024, the price of Alphabet (NASDAQ: GOOGL) stock followed suit, although its more recent performance has not been stellar. However, a newly released artificial intelligence (AI) model is optimistic about its price in 2025.
As it happens, Alphabet’s dominating position in the digital advertising market, the increasing adoption of AI automation tools, and the continued success of YouTube in the Connected TV Medium have given Google’s parent company strong operating leverage and boosted revenue growth.
At the same time, investors seem to be undervaluing Alphabet by around 35%, down from the projected fair value of $254 based on the 2-stage free cash flow to equity, according to the analysis published by retail investment research platform Simply Wall St on August 25.
GOOGL discounted cash flow. Source: Simply Wall St
Meta AI’s Google stock forecast
Taking into account the above and other relevant factors, Finbold has asked the Meta Platforms (NASDAQ: META) AI assistant, Llama 3.1, to provide insights into the potential targets for Google stock forecast in the next year, and the AI model offered its findings as of August 27.
Specifically, Meta’s advanced AI platform has set the potential price range for GOOGL stocks in 2025 “between $251 and $280.69, with an average price target of $274.23,” adding that some analysts have a more conservative estimate of $240, while the more optimistic ones suggest $263.81.
On top of that:
“Alphabet’s revenue is expected to increase by 11.21% in 2025, reaching $397.88B, and its EPS is expected to increase by 13.84%, reaching $8.98. The company’s efforts to reengineer its cost base and expand its operating margins are also expected to have a positive impact on its stock price.
Finally, Llama 3.1 also pointed at the relevant technical analysis (TA) indicators, “such as the forward PE ratio, which is currently at 20.71, and the beta, which is at 1.05,” suggesting that the “stock is relatively stable and has a moderate level of volatility.”
What are analysts predicting for GOOGL stock?
Meanwhile, Wall Street analysts offering their Google stock forecast for the next 12 months have set the price at an average of $205.03, which suggests a 23.39% increase from its current price, while rating it as a ‘strong buy,’ as per TipRanks data accessed by Finbold on August 27.
Wall Street’s 12-month Google stock forecast. Source: TipRanks
It is also worth noting that the analysts at Simply Wall St have observed a potential weakness in the form of GOOGL stock dividend being lower compared to the top 25% of dividend payers in the Interactive Media and Services market and a threat in possibly slower annual earnings than the American market.
On the other hand, they see strength in Alphabet’s earnings growth in the past year exceeding the industry, and opportunities in the annual revenue anticipated to grow faster than the American market, as well as good value based on the price-to-earnings (P/E) ratio and estimated fair value.
Google stock price analysis
For now, the price of GOOGL stock at press time stands at $166.16, reflecting a modest gain of 0.33% on the day, having declined 0.43% across the week and losing 1.99% on its monthly chart, whereas it is recording an advance of 20.26% year-to-date (YTD), according to the latest information.
Google stock price year-to-date chart. Source: Google Finance
Ultimately, GOOGL stock might follow the path set out by Meta AI. Still, it is important to remember that it is only an AI model that shares insights assembled from the internet, so doing one’s own research is critical when investing substantial sums of money in any asset.
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