GOOGL Stock Soars as Alphabet's Stellar Earnings Exceed Expectations

Alphabet Inc.'s (GOOGL) stock is poised to open at a new all-time high on Thursday after the company released its first-quarter earnings report, which exceeded analyst expectations.

The tech giant reported a 63% growth in its Cloud unit and 19% growth in Search, driven by demand for AI. This stellar performance helped offset the decline in Meta shares, with GOOGL's rally lifting the NASDAQ index.

Barclays noted Alphabet's 'best-in-4-years' growth and margins for nearly all its business units, attributing this success to the company's control over its AI infrastructure. The analyst said Alphabet has an 'incredible position across the entire AI stack,' which drove excess returns for its core Search and Cloud units.

Analysts have raised their price targets on GOOGL, with Barclays' Ross Sandler increasing his target by $45 to $405, implying a 16% upside. Citi also raised its target by $42 to $447, about 28% upside.