Alphabet (GOOGL.US) announced a very strong 4Q25 results, with accelerated growth in search and cloud businesses, but capital expenditure will become the market's focus, JPMorgan released a research report saying.
Its 2026 capital expenditure is expected to be between US$175 billion and US$185 billion, significantly higher than the market's highest forecast of US$142 billion.
The broker believed that the YoY 1x growth of capital expenditure is based on strength base, with Gemini now having 750 million monthly active users (MAUs), showing significantly higher user engagement; Google Cloud revenue accelerating to 48% growth, with backlog orders hiking 55% QoQ to US$240 billion; and search revenue growth reaching 17% as AI continued to expand market space.
Therefore, JPMorgan reiterated rating at Overweight on Alphabet, and elevated its target price from US$385 to US$395.
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AASTOCKS Financial News
Website: www.aastocks.com
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10012 |
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0.069 |
6.3 X |
