Alphabet (GOOG, GOOGL) is likely to post robust Q2 results on macro and FX tailwinds, artificial intelligence-aided search monetization, cloud strength and accelerated ad spend, BofA Securities said in a Friday note.
BofA said it now expects Q2 EPS of $2.21 on revenue of $81 billion from the prior forecast of $2.15 on revenue of $80 billion. The brokerage forecast cloud revenue at $13.2 billion.
Internal checks revealed stable Google ad spend growth in Q2. AI search features led to lower click volumes, offset by higher conversion rates, analysts wrote.
While YouTube was impacted by lower spend in April, the platform is benefiting from share data enhancements in the Google Ads ecosystem, according to the note.
BofA reiterated its buy rating on the stock and boosted its price target to $210 per share from $200.
Price: 183.99, Change: +0.41, Percent Change: +0.22
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