Wells Fargo analyst Ken Gawrelski has maintained their neutral stance on GOOGL stock, giving a Hold rating on July 3.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Ken Gawrelski has given his Hold rating due to a combination of factors influencing Alphabet Class A’s stock. The anticipated acceleration in search revenues and paid clicks for the second quarter offers some short-term relief from competitive pressures and concerns about potential disruptions. However, despite these positive trends, the foreign exchange-neutral forecast indicates a deceleration compared to the previous quarter, suggesting that the underlying growth may not be as robust as it appears when adjusted for currency fluctuations.
Additionally, while Google Cloud’s revenue growth projections have been raised, reflecting improved profitability and recent strategic deals, there are still uncertainties surrounding the Department of Justice’s antitrust trial outcomes. The potential for changes in search distribution agreements could impact Google’s market share, particularly with the rise of AI platforms like ChatGPT. These factors, combined with the expectation of range-bound stock performance until AI-related disruptions are fully digested, contribute to the Hold rating, indicating a cautious outlook on Alphabet’s near-term stock performance.
In another report released on July 3, Loop Capital Markets also maintained a Hold rating on the stock with a $160.00 price target.