Monness analyst Brian White has maintained their neutral stance on GOOGL stock, giving a Hold rating yesterday.
Brian White has given his Hold rating due to a combination of factors impacting Alphabet Class A. The company is navigating a challenging macroeconomic environment, facing antitrust issues, and planning significant capital expenditures, all of which contribute to a cautious outlook. Despite these challenges, Alphabet is positioned to benefit from trends in digital advertising, cloud services, and AI innovation, but the competitive landscape remains intense.
White anticipates a deceleration in Alphabet’s growth, with revenue and earnings projections for the upcoming quarter slightly below previous periods. The company’s Google Cloud segment, although expected to show strong growth, previously fell short of market expectations, adding to the uncertainty. Additionally, Alphabet’s substantial planned capital expenditures may weigh on its financial flexibility, prompting a more conservative Hold rating.
In another report released yesterday, Cantor Fitzgerald also maintained a Hold rating on the stock with a $159.00 price target.