GOOGL Alphabet Inc

By Michael Dabaie

Shares of Google parent Alphabet Inc. were up in Friday afternoon trading after quarterly earnings.

Class C shares were up 11% to $1,251.88, while Class A shares were up 10.4% to $1,253.93. Volume was heavier than average.

The company reported second-quarter revenue of $38.9 billion, up from $32.7 billion in the year-ago period and adjusted EPS of $14.21, up from $11.75 a year earlier.

A number of analysts raised their Alphabet price target.

Raymond James raised its target to $1,360 from $1,300 and maintained its rating at Outperform. "We maintain our Outperform rating and $1,360 price target given solid advertising growth (mobile search/YouTube), increasing Google Cloud momentum, and an attractive valuation," Raymond James said.

"While market share remains small today, we believe Hardware/Cloud could be significant value creation drivers long-term," the Raymond James note said.

Wedbush raised its price target to $1,500 from $1,350 while maintaining its Outperform rating. "We expect revenues and profit to continue to grow for the foreseeable future. Google search provides advertisers with an outstanding targeting mechanism with its ubiquitous search engine, has an industry leading video site in YouTube, is dominant with its Google Play store and has been consistently growing its cloud business," the Wedbush note said.

The results showed stability in core Sites ad revenue and likely acceleration in Google Cloud Platform "which along with other significant growth opportunities suggest the potential for solid revenue and profit growth for the foreseeable future," Andy Hargreaves, equity research analyst at KeyBanc Capital Markets, said in a note, raising the price target to $1,516 from $1,430.

SunTrust Robinson Humphrey boosted its price target to $1,400 from $1,325 and reiterated its Buy rating. Credit Suisse raised its target to $1,500 from $1,400.

President Donald Trump tweeted Friday morning "There may or may not be National Security concerns with regard to Google and their relationship with China. If there is a problem, we will find out about it. I sincerely hope there is not!!!"

Earlier this week, Treasury Secretary Steven Mnuchin said in an interview with CNBC he and Mr. Trump have found no national security concerns about work that Google is doing in China.

Google has said previously that it doesn't work with the Chinese military.

Write to Michael Dabaie at michael.dabaie@wsj.com

(END) Dow Jones Newswires

July 26, 2019 13:55 ET (17:55 GMT)

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