To The Moon

Bank of America’s latest research report reiterates Alphabet ( $谷歌A(GOOGL)$ / $谷歌(GOOG)$ ) “Buy” rating with a target price of $370. The current share price is around $338, leaving nearly 10% upside potential! The core logic revolves around “AI empowerment + earnings beat expectations”. Key highlights and investment insights are organized below for sharing～

Core Bullish Reasons

1. Q4 Earnings Are Solid! Likely to Beat Market Expectations Projected revenue of $95.9 billion and EPS of $2.65, both slightly above market consensus. Strong ad growth for Search (15% YoY) and YouTube (15% YoY), plus cloud business maintaining 35% robust growth. Coupled with favorable exchange rates, profitability remains strong.

2. AI Is the Absolute Core Engine User usage surged after Gemini 3.0 launch, not only boosting ad conversion rates for Search and YouTube but also helping Google Cloud form a differentiated advantage via TPU chips—securing major clients like Anthropic and Meta. Future AI-native search and cloud supercomputing orders are expected to continue surging.

3. Cost Control Is Effective, Profit Margins Improve Q4 operating expenses are $700 million lower than market expectations; operating margin rose 119 bps YoY to 39.1%. The company has restrained hiring with no large extra expenses, resulting in solid earnings quality.

Potential Risks to Note

• Current valuation is higher than peers like Microsoft; could correct if AI benefits underperform expectations.

• OpenAI launching ads and hardware increases competitive pressure.

• 2026 capex to rise to $139 billion (50% YoY), may suppress cash flow in the short term.

Long-term bullish on growth potential of AI + cloud business; short-term focus on Feb 4 earnings—if Gemini user data, large cloud orders, or AI ad monetization progress are mentioned, they could be stock catalysts. Buy on dips during volatility; chasing highs not recommended as valuation is no longer cheap—focus on earnings delivery and long-term growth logic.