Market Overview

Wedbush's 7 Reasons To Like Alphabet

Share:
Wedbush's 7 Reasons To Like Alphabet
Related GOOG
When A VC Liked A Potential Investment So Much, She Left Google To Join Them
Q4 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolios
Retail Sector Watch As Walmart Reports Earnings (Wall Street Breakfast Podcast) (Seeking Alpha)
Related GOOGL
Q4 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolios
Analysts Downgrade TrueCar, Forecast Weak Fundamentals
Retail Sector Watch As Walmart Reports Earnings (Wall Street Breakfast Podcast) (Seeking Alpha)

The bullish case for Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) is based on seven factors, according to Wedbush.

The Analyst

Wedbush's Michael Pachter initiated coverage of Alphabet with an Outperform rating and $1,350 price target.

The Thesis

Pachter highlighted the seven positive attributes that he said support a bullish stance on Alphabet. (See the analyst's track record here.) 

  • Google and its products are considered to be the "default gateways" to the entire internet. This concept extends beyond the core search platform to include the primary global email platform (Gmail) and one of the best video streaming platforms (YouTube).
  • Alphabet's ability to gather a trove of information from users implies it can offer superior ad targeting abilities and better value to advertisers.
  • Google's total advertising business generated $106 billion for the one-year period ending June 30, making it a leader in the category. For instance, Google's ad business is more than double the size of Facebook, Inc. (NASDAQ: FB), which had ad revenue over the same time period of $47.8 billion.
  • Google boasts the ability to control the content and ads consumers see "after they search for any term at any time at any location and on any device."
  • Chrome's 67.9-percent market share on desktop and 57.4-percent market share on mobile devices is not only "significantly" higher than its peers, but gives it the ability to show users more relevancy than ever before.
  • Android phone shipments for 2018 are estimated to come in at 1.23 billion, more than five times that of iOS devices. Android's global market leadership adds another dimension to its data collection efforts.
  • Google could become a major winner in the smart speaker category, as Amazon.com, Inc. (NASDAQ: AMZN)'s devices appeal mostly to its own Prime members. "Billions of consumers" are up for grabs by Google.

Price Action

Alphabet shares were down 2.78 percent at $1,096.20 at the time of publication Thursday.

Related Links:

What's Next For FANG Stocks After Recent Weakness?

Google Home Is Gaining Ground On Amazon Echo

Photo courtesy of Google. 

Latest Ratings for GOOG

DateFirmActionFromTo
Feb 2019PiperJaffrayMaintainsOverweightOverweight
Feb 2019Deutsche BankMaintainsBuyBuy
Jan 2019Deutsche BankMaintainsBuyBuy

View More Analyst Ratings for GOOG
View the Latest Analyst Ratings

Posted-In: Echo Google Michael Pachter Smart SpeakerAnalyst Color Price Target Initiation Analyst Ratings Best of Benzinga

 

Related Articles (AMZN + FB)

View Comments and Join the Discussion!

Mid-Day Market Update: Down Down Over 300 Points; Endocyte Shares Spike Higher

One Year Later: The Rise And Fall Of Helios And Matheson