12:54 PM EDT, 10/30/2024 (MT Newswires) -- Alphabet's (GOOG, GOOGL) Q3 results may go some way toward settling ongoing questions about capital expenditures and return on invested capital, but worries persist about Google's ( GOOG ) regulatory challenges and potential market share losses, UBS said in a note Wednesday.

Analysts including Stephen Ju said that bulls are likely to focus on growth in Q3 Search revenue, YouTube ( GOOG ) revenue, Cloud revenue, the new CFO finding cost cuts to offset AI investments, and receding concerns about AI monetization affecting Search.

Bears are expected to focus on a likely upward trend in capital spending for 2025 and beyond, ongoing regulatory issues, uncertainty around the timeline for achieving a return on invested capital from GenAI, and Q4 revenue comparisons, the analysts added.

Following Alphabet's Q3 earnings report, the analysts said they were raising their EPS estimates for 2025 and 2026 by about 3%, and increasing their price target on the stock to $192 from $187.

UBS maintained its neutral rating on the company.

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