Alphabet (NASDAQ: GOOG) Stock Price Up 2.34% Today (Live Coverage)

Shares of Alphabet (NASDAQ: GOOG | GOOGL Price Prediction) are up about 2.34% to $169.30.

Granted, the stock plummeted on news that Apple (NASDAQ: AAPL) plans to add an artificial intelligence-powered search option to Safari. Investors saw this as a threat to Google’s online search dominance. They also argued that could lead to a potential pullback in Alphabet’s revenue.

Microsoft (NASDAQ: MSFT) also tried to wrestle market share from Alphabet by adding AI to its search engine.

But this isn’t the first time other companies challenged Google’s dominance – and it won’t be the last. Plus, it’s also difficult for other companies to rival Google’s search engine. After all, millions of people automatically turn to Google for their Internet searches.

Analysts Love the Undervalued Stock

At the moment, Alphabet trades with a forward price-to-earnings ratio (P/E) of 17.2. That is significantly below its historical average of about 28.

That discount is drawing a good deal of interest from the 15 analysts who have a current average price target of $202.77 (potential 22% upside) with a high-end price target of $225 (potential 35% upside from its current price.

Funds have also been increasing their stake in the GOOG stock. David Tepper’s Appaloosa, for example, increased its stake by adding 128,040 shares, as noted at the end of March. Seth Klarman’s Baupost Group also increased its stake by 45.7% by adding 652,000 shares.

BMO Capital Analysts Say GOOG Has Multiple Catalysts 

Earlier this week, analysts at BMO Capital reiterated an outperform rating on the stock with a price target of $200 a share.

“BMO’s analysis highlights the tech giant’s ongoing developments in its Gemini project and the anticipated rollout of Android 16, which is expected to enhance user experience across its vast ecosystem of devices,” says Investing.com.

“Gemini, Alphabet’s multifaceted initiative, is making strides in natural language processing with Gemini Live, which is integrated into Android devices worldwide,” they added. “The upcoming Android 16 update, featuring Material 3 Expressive, is designed to offer a more personalized user experience, with updates in theming, components, motion, and typography.”