• Shares of Alphabet jumped Wednesday after the Google parent company reported blowout fourth-quarter earnings.
• The robust report led at least nine Wall Street firms to raise their price target on the stock.
• Alphabet's strong earnings report follows a year of outperformance. The stock surged 65% last year, beating all other Big Tech companies and more than tripling gains in the S&P 500.

Shares of Alphabet jumped Wednesday after the Google parent company reported blowout fourth-quarter earnings.

The company's stock closed up 7.5%.

Alphabet reported earnings per share of $30.69, compared to the $27.34 per share analysts expected, according to Refinitiv. It also blew past analysts' revenue projections of $72.17 billion, coming in at $75.33 billion.

The search giant relies heavily on Google's advertising revenue, which soared in the quarter. Revenue for the segment came in at $61.24 billion, up 33% from $46.2 billion in the year-earlier period.

"Very robust advertising revenue growth implies the overall demand environment has stayed healthy amidst volatile supply chain and macro uncertainties," MKM Managing Director Rohit Kulkarni said in a note to investors.

The company's cloud also reported revenue growth of 45% to $5.54 billion. Alphabet CEO Sundar Pichai said on the earnings call the company saw 65% year-over-year growth in the number of cloud deals worth over $1 billion.

The strong report led at least nine Wall Street firms to raise their price target on the stock. UBS' Lloyd Walmsley, lifted his price target to $3,900 from $3,800, representing an upside of 41.7% from Tuesday's close.

Alphabet's strong earnings report follows a year of outperformance. The stock surged 65% last year, beating all other Big Tech companies and more than tripling gains in the S&P 500. Alphabet on Tuesday said its board approved plans for a 20-for-1 stock split.

— CNBC's Jennifer Elias contributed to this report.

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