Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) shares were climbing on Friday after the company reported its first-quarter results amid a lot of hype around the AI revolution. The results came amid an exciting earnings season. Here are some key analyst takeaways from the release. Goldman Sachs On Alphabet Analyst Eric Sheridan reiterated a Buy rating while raising the price target from $185 to $195. Alphabet's first-quarter results reflected higher-than-expected revenues from Search and YouTube, "as Google's broader ad ecosystem benefited from a strong end demand environment and continued to demonstrate product innovation with Performance Max and YT Shorts," Sheridan wrote in a note. "AI innovation continues to build scale in the advertising business (conversions, Performance Max and search generative experience)," he added. "Alphabet struck a multi-sided theme of investing for the long-term (highlighted by Q1 capex levels that would be sustained throughout 2024), upside in both Services and Cloud operating income margins as prior period restructuring and cost initiatives demonstrated operating leverage and continued to scale its capital return policy," the analyst stated. Mizuho Securities On Alphabet Analyst James Lee maintained a Buy rating while lifting the price target from $170 to $190. Alphabet's first-quarter results were "strong" with "better revenue growth and opex controls, combined with assertive commentary in contrast to prior quarters," Lee said. The company's advertising revenues showed "surprising strength," with Search revenue growth at a higher-than-expected 14%, driven by "strength in retail and promotional demands" and YouTube revenue growth accelerating to 21%, as a result of "increased adoption for new format Demand Gen and higher engagement in Shorts," the analyst added. Morgan Stanley On Alphabet Analyst Brian Nowak reaffirmed an Overweight rating while raising the price target from $165 to $195. Search and YouTube revenues came in higher than expectations by 3% and 6%, respectively, "building confidence in faster ’24 and ’25 growth," Nowak said. Alphabet's efforts to "structurally re-engineer the cost structure" was reflected in its first-quarter EBIT of $25.5 billion, he added. Margins expanded by 670 basis points on a year-on-year basis and GenAI advancements "are beginning to drive improved user engagement and advertiser return," the analysts stated. Although higher capital expenditures dampens upside to free cash ...