Alphabet

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: According to an unconfirmed Bloomberg report, Apple (AAPL 173 ****) and GOOGL are in talks that would allow AAPL to license GOOGL’s Gemini large-language model to power new features coming to iOS 18, with a focus for on-device capabilities. While we don’t expect to hear confirmation about any deal until AAPL’s WWDC in June (AAPL is also believed to be having conversations with OpenAI), we do think that GOOGL is best positioned to win any external deal for AI on AAPL’s devices given the strong search partnership the two already have. GOOGL has already demonstrated new AI capabilities with its Samsung relationship, with popular features on those phones including language translation, support of multimodal inputs for search, ability to modify/alter photos, turn videos to slow motion, and […]

Alphabet’s (GOOG, GOOGL) Waymo One said Wednesday it will start inviting members of its waitlist to access its fully autonomous ride-hailing service in Los Angeles on Thursday. The service will start in the Santa Monica to Downtown Los Angeles area, with the initial rides set to be free, the company said in a blog post, adding that it will transition to paid service in the coming weeks. The company said it ran rider-only testing in Austin, Texas, last week, and plans to offer the service in the city later this year. Shares of Alphabet rose about 1.7% in recent trading.

By Eric J. Savitz Google is one of the best businesses ever built. The Alphabet unit controls more than 90% of the global internet search market, which allows the company to sell an astonishing amount of advertising, $238 billion worth in 2023 alone. But the market now fears it could all come unglued by a torrent of new competition from artificial intelligence. To be sure, it hasn’t happened yet. By one estimate, Google still accounts for 39% of the global ad market. Alphabet is the fifth-largest U.S.-listed company by market value, at $1.7 trillion, trailing only Microsoft, Apple, Nvidia, and Amazon.com. Long-term investors, meanwhile, have been more than rewarded. Had you invested $1,000 in Google shares at the August 2004 initial public offering, you’d have more than $55,000 today. But the Alphabet story is finally showing cracks. At a recent $138, shares are flat this year, trailing the 8% gain

By Emily Bary A Bernstein analyst with a neutral rating on Google doubts the company’s latest AI blunder will erode trust in its search brand Only about 20% of Wall Street analysts who cover Alphabet Inc. carry anything but a bullish stance on it. That’s why Bernstein analyst Mark Shmulik says his market-perform rating on the stock makes him uniquely qualified to defend the Google parent company in the wake of its latest artificial-intelligence blunder. Google came under fire last week after it released an image-generation tool that created some racially insensitive images. On Friday the company paused the tool, which it had added to its Gemini chatbot, and Wall Street spent Monday fretting about what the debacle meant for Google’s AI positioning, brand reputation and future in the world of search. Alphabet’s stock (GOOG) (GOOGL) dropped more than 4% in the session. See also: Alphabet’s stock has weathered past

Goldman Sachs is raising its forecast for how much S&P 500 companies will pay out in dividends this year There is good news for income-oriented investors – or anybody who owns any of the so-called Magnificent Seven tech stocks that have powered much of the S&P 500’s gains over the past year. Meta Platforms Inc. (META) likely won’t be the only megacap company to introduce a first-ever dividend in 2024, according to a team of analysts at Goldman Sachs Group (GS). Fellow Magnificent Seven members Alphabet Inc. (GOOGL) and Amazon.com Inc. (AMZN) are well positioned to introduce dividends of their own this year, according to an analysis from a team of Goldman Sachs equity analysts led by David Kostin. Investors’ interest in dividend-paying stocks has increased since Meta announced its first-ever quarterly dividend earlier this month, according to the Goldman team. The increased interest has prompted the team to raise

Alphabet’s (GOOG, GOOGL) Q4 results late Tuesday showed the company’s efficiency workstreams shining through, even amid higher capital expenditures, but the focus is now on the company’s artificial intelligence projects, Morgan Stanley said in a note to clients on Wednesday. “Capex is heading higher, but we see a leading GenAI pipeline and incremental cloud and subscription rev opportunities [to further support ads],” the investment firm said, adding that Alphabet is “one of the best-positioned consumer-facing GenAI companies.” The company’s AI pipeline targeting consumers and advertisers is “flush” and ready to flow, the note said, as Alphabet is launching “multiple emerging GenAI tools for users and advertisers that we see driving more durable multi-year growth.” Morgan Stanley also noted that the benefits of Alphabet “durably re-engineering its cost base continue to show.” Alphabet’s “number of efficiency workstreams/projects continues to grow as product/process prioritization, simplified org structures/removing layers, slower headcount growth, infrastructure

Alphabet, Inc. (NASDAQ:GOOGL) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/31/2024 21% Barclays $180 → $173 Maintains Overweight 01/29/2024 15.41% Keybanc $153 → $165 Maintains Overweight 01/19/2024 4.92% JMP Securities $140 → $150 Maintains Market Outperform 01/17/2024 18.91% Mizuho $155 → $170 Maintains Buy 01/09/2024 18.91% BMO Capital → $170 Initiates Coverage On → Outperform 12/07/2023 16.11% Roth MKM $152 → $166 Maintains Buy 11/21/2023 23.1% Tigress Financial $172 → $176 Maintains Strong Buy 11/16/2023 -9.77% Wells Fargo $126 → $129 Maintains Equal-Weight 10/25/2023 4.92% Piper Sandler $147 → $150 Maintains Overweight 10/25/2023 — Monness, Crespi, Hardt Downgrades Buy → Neutral 10/25/2023 8.41% RBC Capital → $155 Reiterates Outperform → Outperform 10/25/2023 6.32% Roth MKM $146 → $152 Maintains Buy 10/25/2023 -2.08% JMP Securities $138 → $140 Maintains Market Outperform 10/25/2023 11.91% Wedbush → $160 Reiterates Outperform → Outperform 10/25/2023 25.9%

Alphabet (GOOG, GOOGL) shares dropped early Wednesday after the Google parent’s core advertising business narrowly missed market estimates for the fourth quarter, overshadowing gains in other metrics of the company. Earnings came in at $1.64 a share for the December quarter, up from $1.05 the year before, the technology giant said late Tuesday That topped the Capital IQ-polled consensus of $1.60. Revenue advanced 13% to $86.31 billion, ahead of the Street’s view for $85.28 billion. Google advertising revenue increased to $65.52 billion from $59.04 billion in the 2022 quarter, but fell short of the $65.81 billion estimate on Visible Alpha. Shares of the company were down 5.7% in premarket trading. “We see continued upside for long-term advertising growth,” Chief Business Officer Philipp Schindler said on an earnings call, according to a Capital IQ transcript. “Advertising generates the bulk of our revenue, and we continue to invest heavily here.” Google Search

Angela Palumbo Alphabet stock was dropping Wednesday after investors digested disappointing fourth-quarter advertising revenue, but analysts remained bullish on the company’s artificial-intelligence opportunities and valuation. Shares of Google parent Alphabet were falling 5.6% in premarket trading Wednesday to $142.93, while Nasdaq Composite futures are about 1% in the red. Even though the tech-giant posted fourth-quarter earnings and revenue that beat Wall Street expectations, advertising sales missed the consensus call. “Although GenAI tools across Search and Ads should be tailwinds to growth, 4Q results suggest Search growth likely continues to decelerate, despite a strengthening overall ad environment and we’ll be watching whether newer GenAI ad tools improve Google’s Search revenue trajectory, ” Citi analyst Ronald Josey wrote Wednesday. Josey increased his price target on the stock to $168 from $153, and maintained his Buy rating, “given improving trends across Google Cloud, YouTube, and subscriptions as the broader advertising environment continues to

Alphabet Posts Q4 EPS of $1.64 on Revenue of $86.3 Billion, Vs CIQ Analyst Consensus of $1.60/Share on Revenue of $85.3 Billion。

Alphabet Q4 Search & Other Revenue at $48 Billion Vs Visible Alpha Analyst Consensus of $48 Billion; YouTube Ads at $9.2 Billion Vs Consensus of $9.17 Billion。

Alphabet (GOOG) reported Q4 diluted earnings late Tuesday of $1.64 per share, up from $1.05 a year earlier. Analysts polled by Capital IQ expected $1.60. Revenue for the quarter that ended Dec. 31 was $86.31 billion, up from $76.05 billion a year earlier. Analysts surveyed by Capital IQ expected $85.28 billion. Shares of the company traded 4% lower in after-hours activity.