- Record results from Alphabet (GOOG +4.4%, GOOGL +4%) have predictably led to a raft of price target hikes from Wall Street as analysts looked ahead to a likely strong 2021 with ad sales on the sharp rebound.
- Along with robust strength in its core Google search advertising and YouTube ads, the company produced more positive operating metrics later in its 10-Q SEC filing.
- Those monetization metrics included a 25% year-over-year gain in paid clicks at Google Network Properties, as well as a 3% increase in cost per click. The gain was driven by "interrelated factors" including more search queries (mainly mobile growth), ongoing growth in advertiser activity, improvements to ad formats/delivery and easy comparisons.
- And network members properties' impressions rose 7% year-over-year (mainly driven by Google Ad Manager and AdMob), with cost per impression up 19%.
- Barclays gave a huge boost to its price objective - to $3,000 from $2,500, implying a further 26% upside. The firm noted a big share shift for search ads and YouTube from other ad channels, quieting concerns about high penetration into the total addressable market.
- Evercore ISI raised its target to $2,825, calling the company a "COVID winner" with strong fundamentals.
- And BMO Capital Markets and Cowen have gone to $2,700, with BMO expecting Alphabet to head into a period of announcements (more important now in boosting stock performance as shares increasingly reflect the ad market recovery).
- Earnings call transcript