Rosenblatt just initiated coverage on $GOOGL with a Buy rating and $410 price target.
Their thesis: Cloud momentum isn't slowing down. They're betting on operating profit expansion as Alphabet finally starts monetizing all that AI infrastructure—TPUs included.
The multiple should expand if they can prove the capex they've been pouring into AI capacity actually generates returns. That's the real test here: can they turn compute into cash flow?
Not a bad setup if you believe the Cloud business has legs and AI workloads keep migrating to their platform.
Their thesis: Cloud momentum isn't slowing down. They're betting on operating profit expansion as Alphabet finally starts monetizing all that AI infrastructure—TPUs included.
The multiple should expand if they can prove the capex they've been pouring into AI capacity actually generates returns. That's the real test here: can they turn compute into cash flow?
Not a bad setup if you believe the Cloud business has legs and AI workloads keep migrating to their platform.