One Reason Why Alphabet (GOOGL) Stock Is Surging Today

Alphabet (GOOGL) stock is advancing this afternoon after Susquehanna pointed to an upside bias for the second half of the year for Google.
By Rachel Graf ,

NEW YORK (TheStreet) -- Shares of Google parent Alphabet (GOOGL) - Get Report are up 2.47% to $753.80 in late-afternoon trading on Monday after Susquehanna reiterated a "positive" rating and $930 price target on the stock. 

A major North American search engine marketer recently told the firm that spending trends appear "solid and stable" for search giant Google's second quarter, Barron's reports.

Spending for the search engine marketer was in the mid- to -upper teens year-over-year and stable with first-quarter trends, indicating in-line results for Google, Susquehanna added.

Mobile impressions, product listing ads on mobile and desktop and rising costs per click on desktops should drive the results, the firm wrote in a note cited by Barron's.

Susquehanna estimates that gross advertising revenue growth will rise 21% from a year ago, while sites revenue will climb 24%.

Alphabet is scheduled to report second-quarter earnings after the market close on July 28.

Additionally, Google recently shut down an internal project that would have created a standalone virtual reality headset to rival Facebook's (FB) Oculus and HTC, sources told Recode.

(Alphabet is a core holding in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trial here.)

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B+.

Alphabet's strengths such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

You can view the full analysis from the report here: GOOGL

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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