Alphabet (NYSE: GOOG) stock price rallied sharply in the second half of 2019 amid bullish outlook from analysts. In addition, the market pundits are expecting the extension of the bullish trend in fiscal 2020. They are presenting several catalysts such as ads growth and operational efficiencies for the potential share price performance.
GOOG share price rose 30% since the beginning of 2019; Alphabet stock price is hovering at around $1361 – which is the highest level in history. GOOG share price is up 75% in the past three years. Consequently, analysts are expecting almost 30% upside in the following year. Moreover, its financial growth has been offering support to valuations and share price performance.
Analysts are Optimistic About 2020
Piper Jaffray has set the GOOG share price target to $1,500, driven by the ongoing shift to online ads. Its analyst Michael Olson says Alphabet is the biggest beneficiary of the growth in online ads. Analysts predict almost half of global ad dollars have shifted online.
The analyst said, “Alphabet will face ongoing regulatory scrutiny, but the Street has “become numb to this,” and fundamental tailwinds will offset negative news.”
Citi also lifted the price target to $1,500. The firm is showing confidence in valuations despite a robust rally in the share price. Stifel has also presented a similar outlook. The firm provided a Buy rating amid positive financial growth.
Financial Numbers Support Alphabet Stock Price
The company had generated 20% revenue growth in the latest quarter. The revenue growth is driven by mobile search, YouTube and Cloud. Its Q3 revenue hit $40 billion level for the first time in history. The company plans to aggressively invest in growth opportunities to sustain the revenue growth momentum. It is also looking to make a few acquisitions in the following quarters.
Ruth Porat, Chief Financial Officer said. “We continue to invest thoughtfully in talent and infrastructure to support our growth, particularly in newer areas like Cloud and machine learning.”