Alphabet’s (GOOG, GOOGL) Q1 revenue is likely to beat Street view, with upside driven by search stability, its YouTube platform, and the benefit from the leap year, BofA Securities said in a Thursday note.
The company is set to release its Q1 results on April 25 and BofA Securities said positive factors for this period include search upside, the integration of search generative experience into its search function, the impact of shorts on YouTube traffic and revenue growth, and higher margins from cloud strength.
BofA Securities also flagged potential risks to the company’s results such as growing expenditures for new generative artificial intelligence investments, the impact of the Digital Markets Act, and slowing search growth.
BofA Securities maintained its buy rating on Alphabet with a price target of $173.