Alphabet Shares Gain Momentum on Cloud Deal and Analyst Optimism

Alphabet Inc. continues its upward trajectory, building on recent strength. A significant expansion in its cloud business, renewed interest in its holdings in Waymo and SpaceX, and a series of analyst price target upgrades are providing substantial momentum. The stock is firmly in an uptrend, but questions remain about the sustainability of this move.

The positive developments have not gone unnoticed by Wall Street. Several prominent firms have updated their valuation models, resulting in higher price targets for Alphabet's stock.

• Wedbush analyst Scott Devitt raised his target to $350, maintaining an "Outperform" rating.
• Citigroup also increased its target to $350, reiterating a "Buy" recommendation.
• Guggenheim holds one of the more bullish outlooks, with a prior-established target of $375.

The consensus view remains decidedly positive, with rising average price objectives. Analysts frequently cite Alphabet's formidable position in the artificial intelligence sector and growth catalysts extending beyond its core advertising operations as key justifications for their optimism.

Major Cloud Agreement Fuels Growth

A primary catalyst behind the recent share price strength is a substantially expanded cloud contract. Alphabet announced a multi-year extension of the collaboration between Google Cloud and cybersecurity leader Palo Alto Networks. Reports suggest the deal could be worth approximately $10 billion.

This agreement carries several implications for the cloud segment:
* It secures multi-year, predictable revenue streams.
* It bolsters Google Cloud's competitive stance against rivals Microsoft Azure and Amazon Web Services (AWS).
* It validates the strategic focus on integrating AI capabilities tightly with security solutions.

The deal underscores that major enterprise clients are willing to allocate significant budgets toward AI-powered security architectures—a domain where Google Cloud aims to leverage its strengths.

Hidden Value in Strategic Holdings

Investor focus is increasingly turning to Alphabet's equity investments, which have historically been peripheral in the company's market valuation.

• Waymo: New valuations for the autonomous driving subsidiary are circulating near the $100 billion mark. Reports of a potential funding round of about $15 billion would make this valuation more tangible and amplify its contribution in a sum-of-the-parts analysis.
• SpaceX Stake: Alphabet's shareholding in SpaceX is viewed as another potential value driver. A future initial public offering of SpaceX could allow Alphabet to unlock considerable hidden reserves and further strengthen its balance sheet.

Market experts are increasingly regarding these assets as independent value creators not yet fully reflected in the current share price.

Should investors sell immediately? Or is it worth buying Alphabet?

Technical and Operational Strength

From a technical perspective, the equity presents a robust picture. The stock concluded the recent week at €262.00, marking a daily gain of 1.55%. Over a twelve-month period, the shares have advanced approximately 44%, trading only about 6% below their recent 52-week high.

The stock is trading comfortably above its 50-, 100-, and 200-day moving averages. A Relative Strength Index (RSI) reading of 59.8 indicates a neutral to slightly positive setup without immediate overbought conditions. The annualized 30-day volatility of around 32% reflects a lively but not extraordinary level of fluctuation.

Operationally, Alphabet highlights its appeal in the competitive AI landscape. The company notes that roughly 20% of its AI hires planned for 2025 are expected to be "boomerang" employees—professionals returning to the firm. This is interpreted as a signal that Alphabet remains exceptionally well-positioned in the fierce competition for specialized talent, a crucial advantage in a tight market for expertise.

Regulatory Headwinds and Conclusion

On the risk side, regulatory scrutiny persists. An antitrust investigation continues in the European Union, and further legal challenges in the United States remain possible. While such proceedings can create short-term volatility for the stock, they have not, to date, altered the broader upward trend.

Conclusion: A Well-Supported Advance

In summary, Alphabet's shares are currently in a technically sound uptrend, supported by multiple clear catalysts:
* A substantial, multi-year cloud partnership.
* Upward revisions to price targets by leading analysts.
* Growing recognition of the embedded value in holdings like Waymo and SpaceX.
* A strong competitive stance in the AI talent market.

Provided the share price remains above key moving averages and regulatory pressures do not escalate significantly, the evidence suggests the positive momentum could be sustained in the coming months.