Skip to main content

Market Overview

Alphabet Isn't Facebook, Stifel Says In Upgrade

Alphabet Isn't Facebook, Stifel Says In Upgrade

While shares of Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) lost more than 4 percent Tuesday in reaction to first-quarter results, Stifel took the opportunity to turn bullish on the stock.

The Analyst

Stifel's Scott Devitt upgraded Alphabet's stock rating from Hold to Buy with an unchanged $1,234 price target.

The Thesis

Stifel's neutral stance on Alphabet's stock was partly based on a cautious stance within the online advertising industry amid Facebook, Inc. (NASDAQ: FB)'s data privacy scandal, Devitt said in the upgrade note.

A notable difference separates the two companies, Devitt said: Facebook's data collection relationship with consumers is "public and without consumer intent," while Alphabet/Google's data collection relationship is "private and led by consumer intent."

Alphabet acquires information as users of its platforms privately request information, which prompted the company to take a "more serious approach" to the security and privacy of consumers, the analyst said. Also, Alphabet's products appear to have more "proven durability and utility" in people's lives compared to Facebook, as evidenced by recent weakness in users and usage for Facebook's North American products.

Stifel's price target is based on a 20x P/E multiple on 2019 GAAP earnings, which is a "reasonable" valuation for a company that boasts a global dominance in online search and video and emerging products in cloud, hardware and self-driving cars, Devitt said. 

Price Action

Class A Alphabet shares were trading down 0.17 percent Wednesday at $1,020.88.

Related Links:

Here's What Wall Street Thinks About Alphabet's Q1 Earnings

19 Companies Google Could Buy With Its $102 Billion In Cash

Latest Ratings for FB

Apr 2021Cowen & Co.MaintainsOutperform
Apr 2021WedbushDowngradesOutperformNeutral
Apr 2021Evercore ISI GroupAssumesOutperform

View More Analyst Ratings for FB
View the Latest Analyst Ratings


Related Articles (GOOG + FB)

View Comments and Join the Discussion!

Posted-In: Google Online Video Scott Devitt StifelAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

Latest Ratings

GIKColliers SecuritiesInitiates Coverage On14.0
SANWLake StreetInitiates Coverage On6.0
LILAMorgan StanleyDowngrades15.0
BEJP MorganUpgrades36.0
NEXACredit SuisseUpgrades11.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at