(This is CNBC Pro’s live coverage of Wednesday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) Two tech stocks were among the names being talked about by analysts on Wednesday. The Street reacted to Alphabet’s latest quarterly report, with many keeping a bullish outlook despite a premarket slide for the stock. Meanwhile, Goldman Sachs raised its rating on Spotify to buy. Check out the latest calls and chatter below. All times ET. 5:54 a.m.: Wall Street stands by Alphabet, AI potential post-earnings Wall Street analysts remain bullish on the outlook for Alphabet , even after the stock fell on the back of its second-quarter results. “GOOGL believes AI Overviews are driving higher usage & engagement, & monetization is building,” wrote JPMorgan’s Doug Anmuth. “Importantly, we believe GOOGL’s strong 2Q Search results, combined w/ further positive commentary on AI Overviews, will allay near-term fears around market share & competition, though it will take time to work through long-term debates.” The commentary from Wall Street comes after the search giant beat quarterly estimates on the top and bottom lines, posting earnings of $1.89 per share and $84.74 billion in revenue. Shares, however, slipped about 3% as the company fell short on advertising revenue estimates for YouTube. Bank of America analyst Justin Post reiterated his buy rating and $206 price target in the wake of the print, saying that another solid quarter “reinforces [the firm’s] thesis that Google is a net AI beneficiary.” Goldman Sachs’ Eric Sheridan, meanwhile, noted that “away from any short-term debates (which might persist about the macroeconomic environment and/or nuances of this specific earnings report), we continue to view Alphabet as well-positioned against both the current … and potential future … computing landscapes.” The analyst retained his buy rating and upped his price target to $217 a share, reflecting about 19% upside. He expects discussions surrounding the future of search and long-term investments in data centers and other capital expenditures to drive investor discussions going forward. Despite the positive long-term outlook on shares, some analysts are bracing for some potential uncertainty and pressure in the second half as Alphabet faces difficult advertising comparisons. Jefferies analyst Brent Thill expects a deceleration in search, offset partially by Olympics and election content. “Despite the tougher comps, we expect GOOGL can grind higher in 2H thanks to continued strength in core Search, potential for Google Cloud to further accelerate on AI, and additional margin surprises,” he wrote. – Samantha Subin 5:54 a.m.: Goldman Sachs upgrades Spotify The sky’s the limit for Spotify after its latest quarterly report, according to Goldman Sachs. Analyst Eric Sheridan upgraded the audio streaming platform to buy from neutral. His price target of $425, up from $320, implies upside of more than 28% from Tuesday’s close. “SPOT is the clear global audio platform leader, which we expect to translate into elements of scaled compounded user growth, rising engagement across multiple format structure & pricing power for our operating forecast period,” Sheridan wrote. He added that, “coming out of its late 2023 operating costs restructuring, SPOT (in our view) is beginning to show much of the gross and operating margin trajectory that the company has discussed as medium/long term goals dating back over the last 3-5 years.” The upgrade follows Spotify reporting record quarterly earnings, sending shares up nearly 12%. That marked the stock’s biggest one-day gain since January 2023. SPOT 5D mountain SPOT 5-day chart — Fred Imbert
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