Gelonghui, November 1st | UBS released a report indicating that some of the benefits Alphabet shareholders have received from new capital expenditures are reflected in the significant growth in search business revenue. It is estimated that Alphabet will increase its search business revenue by approximately $24 billion this year, compared to $13 billion in 2023 and $15 billion in 2022, mainly driven by innovative measures such as Performance Max. In addition, Alphabet's cloud revenue growth also improved significantly in the third quarter. The bank expects its cloud revenue to increase by approximately $10 billion for the whole year, compared to approximately $7 billion in both 2022 and 2023. Currently, the growth rate of its cloud business has surpassed that of YouTube. The bank believes that the above factors will help Alphabet resolve issues related to capital expenditures and return on investment, but the company's regulatory issues and concerns about the prospect of losing market share in its most important business units may dampen the company's growth. The bank raised its earnings per share forecasts for Alphabet for 2025 and 2026 by approximately 3%, increased its price target from $187 to $192, and maintained its "neutral" rating.
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