Why These 4 Alphabet Analysts Are Divided Over Q4 Results

Zinger Key Points
  • Although Search and YouTube revenues were disappointing, Alphabet is set to integrate AI across its product suite, one analyst says.
  • The company’s plans to contain costs seems too sluggish, another analyst states.

Shares of Alphabet Inc GOOGL remained in the red in early trading on Friday.

JMP Securities on Alphabet

Analyst Andrew Boone maintained a Market Outperform rating and a price target of $132.

“Alphabet reported 4Q22 results, whereby revenue was 1% below consensus as search declined 2% Y/Y and operating income came in 1% below consensus,” Boone wrote in a note.

“While we acknowledge worse-than-expected results across Search and YouTube, we continue to believe Alphabet is one of the leaders in AI, and we expect Alphabet to be able to successfully integrate AI across its product suite,” he added.

Oppenheimer on Alphabet

Analyst Jason Helfstein reaffirmed an Outperform rating while raising the price target from $130 to $155.

“Strength in retail and travel was offset by weakness in finance and broad advertiser pullback in YouTube and Network,” Helfstein said.

“Leveraging Deepmind, GOOG plans to roll out AI in coming months focusing on: large models, new tools and APIs for developers and as enabler for businesses,” he added.

Check out other analyst stock ratings.

Rosenblatt Securities on Alphabet

Analyst Barton Crockett reiterated a Buy rating while reducing the price target from $130 to $128.

“Google's 4Q22 was a little soft, as most key revenue lines came in a little below our estimates,” Crockett said in a note.

“We assume this weak ad macro will pass, perhaps sooner rather than later… A confluence of easing inflation and the Fed nearing the end of rate hike cycle suggests that macro recovery/stabilization could be starting,” he added.

Needham on Alphabet

Analyst Laura Martin maintained a Buy rating and price target of $115.

“GOOGL missed our rev ests. but cost growth was above our ests.,” Martin said.

“GOOGL talked about slower cost growth and flat CapX in 2023, with benefits in 2024. This is too slow for Wall Street, we believe,” she stated.

GOOGL Price Action: Shares of Alphabet had declined by 0.71% to $106.99 at the time of publication Friday.

Read Next: Amazon Vs. Microsoft Vs Google: Who Won The Cloud Race In Q4?

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Posted In: Analyst ColorEarningsNewsPrice TargetReiterationTop StoriesAnalyst RatingsMoversTechTrading IdeasAndrew BooneBarton CrockettJason HelfsteinJMP SecuritiesLaura MartinNeedhamOppenheimerRosenblatt Securities
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