Piper Sandler Names Google a Top Mega-Cap Stock to Own in 2025 From Investing.com

Investing.com – Piper Sandler named Google (NASDAQ:) as a top mega-cap pick for 2025, a move driven by a product-driven rebound and strong survey data pointing to robust growth opportunities.

The company’s recent surveys underscore Google’s leadership in AI, with tools like Gemini and Performance Max emerging as prominent drivers of ad spend growth.

Piper analysts note that Google Cloud Platform (GCP) has been named “the most ‘strategic’ AI provider” among chief information officers (CIOs).

“Next year estimates appear achievable, particularly in advertising revenue around 10%, while cloud and YouTube subscriptions will continue to see elevated growth,” analysts led by Thomas Champion added.

Additionally, Google’s valuation, trading at 19 times 2025 earnings, represents an attractive entry point relative to the broader market, analysts said. They reiterated their Overweight rating on the stock with a price target of $210, representing a 21% upside from current levels.

Piper Sandler was selected in the mid-cap space Zillow Group Inc (NASDAQ:) as a top choice. The company cited “evidence” that Zillow’s Enhanced Markets tools result in higher transaction shares and the company’s ability to outperform market growth rates.

Analysts also noted Zillow’s mortgage segment’s rapid rise and reasonable valuation relative to its historical values, maintaining an Overweight rating with a $93 price target.

In the meantime, Vimeo (NASDAQ:) was named the top small-cap stock for 2025 and received an upgrade to Overweight.

Piper Sandler highlighted the company’s successful cost restructuring over the past two years and its thriving enterprise segment, which now generates over $100 million per year. This “will likely return the company to growth regardless of self-service performance,” the company noted.

“The new CEO Moyer has accelerated the pace of implementation,” it continued.

Pinterest (NYSE:) and IAC (NASDAQ:), on the other hand, were both downgraded to Neutral.

Analysts expressed concerns about Pinterest’s revenue growth and unresolved questions following its recent earnings reports and lowered its price target to $36 from $41.
For IAC, the company cited an underwhelming asset configuration following its spinoff from Angi and lower confidence in its turnaround prospects, lowering its price target to $54 from $68.