KeyBanc lowers Alphabet price target to $410 amid AI profit concerns
KeyBanc reduced its price target for Alphabet Inc. to $410 from $435 while keeping an Overweight rating. The cut reflects a more conservative outlook for cloud and TPU earnings and questions about the profitability of the company's AI investments. Alphabet’s second‑quarter cloud operating income rose to $8.814 billion from $2.826 billion a year earlier, driving a $9.499 billion increase in overall operating profit. Despite the lower target, the stock rose 1.29% to $345 on the day of the announcement.
Why it matters
KeyBanc’s lower target signals reduced expectations for near‑term AI‑driven earnings growth, which could temper investor enthusiasm even as the share price climbs. The strong cloud profit contribution highlights the segment that analysts expect to sustain earnings growth.
Key facts
- 1KeyBanc cut Alphabet’s price target to $410 from $435 while maintaining an Overweight rating. investing.com
- 2Alphabet’s Q2 cloud operating income was $8.814 billion, up from $2.826 billion a year earlier. gurufocus.com
- 3Google Services operating income increased to $39.544 billion from $33.063 billion a year earlier. gurufocus.com
- 4Total operating profit rose $9.499 billion to $40.770 billion. gurufocus.com
- 5Alphabet shares closed at $345, up 1.29% from the prior close. gurufocus.com
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.