The rally came on the back of a research note released by Tigress Financial Partners, a New York‑based financial‑services firm. In the note, senior analyst Ivan Feinseth raised his target price for Alphabet’s Class A and Class C shares from $415 to $485, labeling the stock a “strong buy.”
Feinseth cited Alphabet’s “AI flywheel” as the primary catalyst, arguing that the company’s leadership across Search, Cloud and YouTube is translating into faster revenue growth, expanding profit margins and stronger monetization of its artificial‑intelligence‑driven products.
The analyst acknowledged short‑term challenges, including a high return‑on‑capital ratio and “insanely high” capital spending as Alphabet builds out its AI infrastructure. Nonetheless, he argued that the firm’s scale, diversified ecosystem and long‑term profitability position it for “exceptional long‑term returns.”
Following the note’s release, Alphabet stock (GOOG, GOOGL) rose sharply in pre‑market activity, reaching a high of $355.13, roughly a 3% gain from the previous close. By 11 a.m. ET, the shares were still up about 1.1%, trading near $347.55.
Other market participants appear to share Tigress’s optimism. Data from S&P Global Market Intelligence shows Alphabet’s forward price‑to‑earnings multiple at 17.2×, close to a consensus forecast for 14.6% annual earnings growth over the next five years. However, analysts caution that free‑cash‑flow generation remains modest, with trailing free cash flow at about $53 billion—roughly 22% of reported earnings—due to ongoing capital expenditures on AI projects.
The price‑target hike and accompanying commentary underscore the growing emphasis investors are placing on Alphabet’s AI initiatives as a driver of future earnings, even as the company balances heavy investment with cash‑flow considerations.