Alphabet (GOOG) PT Raised to $1,900 at Cowen After Demand Resurgence and Slowing Hiring Causes an Operating Income Blowout

Cowen analyst John Blackledge raised the price target on Alphabet (NASDAQ: GOOG) to $1,900.00 (from $1,825.00) after the company reported a better top line & a huge Op. Income beat (~35%). The upside came from Adv., Cloud (+45% y/y), & YouTube and Play. YouTube saw a sharp 3Qturnaround in Brand & DR, while Opex was notably better, helped by slower hiring and lower S&M.

The analyst reiterated an Outperform, stating "GOOG's 3Q marked a sharp advertising turnaround, recovering to +10% y/y vs. 2Q's ~8% y/ydecline due to the pandemic. Meanwhile, Cloud & YouTube also beat cons. estimates amid a sequential improvement, while GOOG's tactical decision to slow hiring at the beginning ofthe pandemic led to slower cost growth & a massive Op. Income beat."

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