April 24, 2024


Unlimited Technology

Google Searching for Positive Response with Upcoming Launches

Even the largest companies have to maintain growth. More acute than long-term business performance is media attention, which can influence traders on a day-to-day basis. While other tech giants are caught up in the news cycle, Alphabet Inc. (GOOGL) hopes to soon impress investors with new hardware, cloud services, and improving revenues from ad spending. (See Top Smart Score Stocks on TipRanks)

Reporting on the massive technology firm is Brian White of Monness, who wrote that at least for now, most of the negative press is focused on Facebook (FB) and its ongoing controversy. Until the same media cycle turns toward Alphabet, White expects the company’s new innovations to be the talk of the town.

White reiterated a Buy rating on the stock, and set a price target of $3,500. This target reflects a potential 12-month upside of 28.25% from current levels.

In about a week, Alphabet is expected to launch two new Pixel smartphone models, as well as announce strategic partnerships. White added that Google’s advertising business is currently undergoing a rapid recovery due to increased spending in the industry, and that the firm is benefitting from successful monetization of newer initiatives.

Although the company’s cloud computing platform, Google Cloud, holds the third most market share globally, it is experiencing immense growth and is far outpacing the competition.

In regard to its cloud data warehousing segment, Google BigQuery is already posing a major threat to established players, most notably Snowflake (SNOW).

As far as potential near-term downsides go, White recognizes the risk of further investigations on antitrust infractions. Beyond this, White does not foresee any other obstacles threatening Google’s march toward a higher valuation.

On TipRanks, GOOGL has an analyst rating consensus of Strong Buy, based on an impressive 31 Buy ratings. The average Alphabet price target is $3,207.27, suggesting a possible 12-month upside of 17.53%. GOOGL closed trading on Tuesday at a price of $2,728.98 per share.

Disclosure: At the time of publication, Brock Ladenheim did not have a position in any of the securities mentioned in this article

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