Intel stock spikes after report of possible US government stake
On Wednesday, RBC Capital Markets maintained their Outperform rating on Alphabet Inc. (NASDAQ:GOOGL) with a steady price target of $200.00. This aligns with the broader Wall Street sentiment, as InvestingPro data shows analyst targets ranging from $159 to $240, with a strong buy consensus rating of 1.58. With Alphabet set to report earnings after the market closes on Thursday, RBC Capital analysts highlighted four key areas of interest for investors: near-term demand trends, the impact of artificial intelligence (AI) on Search impression growth, forward-looking tariff commentary, and the potential for operational expenditure efficiencies. According to InvestingPro, Alphabet demonstrates strong fundamentals with a 13.87% revenue growth and maintains an excellent financial health score. For deeper insights into Alphabet’s financial metrics and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
The analysts noted that there is an expectation of a slight miss on Street forecasts for near-term demand trends. However, there is optimism regarding Alphabet’s margin commentary, with the potential for operational expenditure efficiencies to be revealed. The conversation with a few Amazon (NASDAQ:AMZN) aggregators provided additional insights into tariff commentary, while a deep dive into Alphabet’s broader AI product portfolio and a tariff EPS downside scenario analysis were also conducted.
The analysts observed that investor positioning has become more positive recently, viewing Alphabet as a near-term safe haven, with excitement building for the upcoming Google I/O event in May. They also mentioned that Alphabet’s recent multiple compression has made the downside appear more limited.
Furthermore, RBC Capital analysts have adjusted their estimates slightly downward for Alphabet’s Network & Other revenue, where they were already more conservative than Street estimates for Search. Despite these modest estimate revisions, the overall outlook for Alphabet remains positive according to RBC Capital, with the $200.00 price target suggesting confidence in the company’s performance.
In other recent news, Alphabet Inc. has been the subject of various developments. Analysts from Bernstein have revised their price target for Alphabet, lowering it from $200 to $165, while maintaining a Market Perform rating. This adjustment reflects concerns over Alphabet’s exposure to cyclical advertising and potential regulatory pressures. Additionally, Alphabet’s Google is reportedly involved in an antitrust trial, with the U.S. Department of Justice seeking to address what they claim is Google’s monopoly over online search and related advertising. The trial has brought to light Google’s past consideration of exclusive deals with Android manufacturers for its search app, AI app, and Chrome browser.
In response, Google’s Vice President of Regulatory Affairs, Lee-Anne Mulholland, has expressed concerns that the DOJ’s proposals could harm consumers and the U.S. economy. She argues that these proposals could lead to higher prices and hinder innovation. Meanwhile, Alphabet is also part of the "Magnificent Seven" stocks, which have seen an uptick in premarket trading, rebounding from a previous sell-off. This group includes other tech giants like Tesla (NASDAQ:TSLA) and Apple (NASDAQ:AAPL), which have also experienced positive movement. These developments indicate a complex landscape for Alphabet, with both opportunities and challenges on the horizon.
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