As November begins, JPMorgan analysts are signaling confidence in select growth names, adding Alphabet (GOOG, GOOGL) and Alkami Technology (ALKT) to the firm’s list of top stock ideas heading into year-end.
The update comes on the heels of a strong October rally that saw major indexes rebound from recent volatility. The S&P 500 rose 2.3%, the Nasdaq Composite jumped 4.7%, and the Dow Jones Industrial Average gained 2.5%, marking its sixth consecutive positive month — a streak not seen since 2018.
That momentum has been fueled by better-than-expected third-quarter earnings from Big Tech firms like Amazon, Microsoft, and Meta. However, lingering political uncertainty over the government shutdown and speculation about whether the Federal Reserve will deliver another interest-rate cut in December continue to weigh on market sentiment.
JPMorgan’s Analyst Focus List: November Changes
Each month, JPMorgan publishes its Analyst Focus List, highlighting favored stocks across growth, value, income, and short strategies. The list reflects where the bank’s research teams see the strongest risk-adjusted returns over the coming months.
For November, the firm added Alkami Technology and both Alphabet share classes, while removing LegalZoom (LZ) and Scholar Rock (SRRK) from the lineup.
| Company | Ticker | Price Target | Sector | Strategy |
|---|---|---|---|---|
| Alkami | ALKT | $38 | Technology | Growth |
| Alphabet Inc. | GOOGL | $340 | Media & Telecom | Growth |
Source: JPMorgan
Alphabet: AI and Cloud Powering Next-Phase Growth
Alphabet’s stock closed October up nearly 16%, boosted by a 3% rally after strong third-quarter results that outpaced Wall Street expectations. The company’s advertising rebound, cloud profitability, and ongoing artificial intelligence initiatives are driving renewed optimism.
“AI is driving expansion across the digital search ecosystem & monetization potential while Google Cloud growth continues to accelerate, and the durable reengineering of costs help offset elevated capex spending,” JPMorgan analysts wrote in their report explaining the addition.
Investors have rewarded Alphabet’s push into AI-powered search, YouTube automation, and enterprise cloud services. Google Cloud’s profit margins have turned positive for three consecutive quarters, suggesting that the company is managing to grow efficiently even as it spends heavily to build AI infrastructure.
Alphabet’s $340 price target from JPMorgan implies significant upside from current levels, signaling that Wall Street believes the company can sustain double-digit growth in both revenue and earnings through 2025.
Alkami Technology: A Smaller Name with Big Fintech Ambitions
While Alphabet grabs headlines, JPMorgan’s inclusion of Alkami Technology stands out as a play on digital banking infrastructure — a subsector that continues to see strong demand from credit unions and community banks modernizing their tech stacks.
The company’s third-quarter results showed adjusted EBITDA of $16 million, topping analyst estimates of $13.6 million, though revenue came in slightly light at $113 million versus expectations of $113.6 million, according to FactSet. Shares fell 8% following the report and 18% over the full month of October, reflecting investor caution after a strong summer rally.
JPMorgan analysts, however, noted that the fundamentals remain solid: Alkami reported a record number of customer implementations and continued growth in annual recurring revenue (ARR), underscoring the long-term adoption of digital banking software. The firm’s $38 price target suggests substantial upside for patient investors who can stomach short-term volatility.
Broader Takeaway for Investors
JPMorgan’s latest reshuffling hints that the bank expects AI and digital infrastructure themes to continue driving equity performance into 2025. The emphasis on Alphabet and Alkami reflects a preference for companies with scalable tech platforms, recurring revenue models, and durable margins even in a slower-growth environment.
Meanwhile, the removal of LegalZoom and Scholar Rock points to a shift away from speculative or unprofitable growth stories in favor of companies with clearer earnings trajectories.
Why It Matters
Investors watching for institutional sentiment shifts often use JPMorgan’s Analyst Focus List as a signal of where smart money is leaning. The November picks suggest that while large-cap tech remains the backbone of market performance, selective mid-cap opportunities in fintech and software could offer strong relative returns as inflation stabilizes and rate pressures ease.
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