TLDR
- Citi raised Alphabet price target to $203 from $200, maintaining Buy rating on strong Search and YouTube performance
- YouTube Shorts now generates over 200 billion daily views, up from 70 billion in September 2023
- UK’s Competition and Markets Authority investigating Google’s search practices under new Digital Markets Competition Regime
- Google maintains over 90% market share of UK search queries with 200,000+ UK businesses relying on its advertising
- ChatGPT reached 603 million monthly users in May compared to Gemini’s 77 million users
Alphabet stock received a boost from Wall Street analysts even as regulatory challenges mount overseas. Citi maintained its Buy rating while lifting the price target to $203 from $200.
The investment firm cited strong performance metrics across Google’s core advertising platforms. Search and YouTube remain central to most media buying strategies according to their research.
Advertisers showed optimism about Google’s artificial intelligence features. AI Overviews, AI Mode, and AI Max for Search all demonstrated improved click-through rates in recent testing.
The new Gemini 2.5 Flash-Lite received positive feedback from marketers. This tool could enhance ad creative capabilities and support the shift toward Keywordless Targeting approaches.
YouTube’s dominance in video consumption continues to grow. The platform now sees over 1 billion hours watched daily on television screens alone.
The service captured 12.5% of total U.S. viewing time across all platforms. This represents a substantial share of the overall entertainment landscape.
YouTube Shorts Explosion Drives Growth
YouTube Shorts experienced explosive growth over the past year and a half. Daily views jumped to over 200 billion from approximately 70 billion in September 2023.
New features like Veo 3 will launch for Shorts this summer. These additions could further accelerate user engagement on the short-form video platform.
The strong performance metrics led Citi to raise revenue projections. The firm increased 2025 estimates by 1.3% and 2026 forecasts by 2.1%.
Citi maintained its valuation methodology of approximately 20x 2026 price-to-earnings ratio. This approach supported the new $203 price target calculation.
UK Regulatory Investigation Begins
Meanwhile, regulatory pressure intensified across the Atlantic. The UK’s Competition and Markets Authority launched an investigation into Google’s search practices.
WATCH: Britain's competition regulator said it was proposing to designate Google with 'strategic market status' to give it greater control over how the US tech giant operates search services https://t.co/5SdTsasZbK pic.twitter.com/1iJIZiB0MJ
— Reuters Business (@ReutersBiz) June 24, 2025
The probe falls under Britain’s new Digital Markets Competition Regime. Regulators expressed concerns about search advertising costs and ranking transparency.
The CMA noted that Google controls over 90% of UK search queries. More than 200,000 British businesses depend on Google’s advertising platform to reach customers.
Default agreements with mobile device makers drew particular scrutiny. Regulators worry these deals limit competitor access to potential users.
The investigation will conclude in October with potential remedial measures. Possible requirements include choice screens for alternative search providers and increased transparency for publishers.
Sarah Cardell, the CMA’s chief executive, highlighted the importance of the investigation. She noted that the average UK resident conducts 5 to 10 searches daily through Google’s platform.
Alphabet responded that the CMA’s suggestions appeared “broad and unfocused.” The company committed to working constructively with regulators throughout the process.
Competition concerns extend beyond search functionality. European regulators continue examining various aspects of major tech companies’ operations.
ChatGPT reached approximately 603 million monthly active users in May. This compares to Gemini’s 77 million monthly users during the same period.
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