Connect with us

Hi, what are you looking for?

Oracle of  Omaha Says – Investing and Stock NewsOracle of  Omaha Says – Investing and Stock News

Editor's Pick

Google stock just got a rare downgrade

Alphabet Inc (NASDAQ: GOOGL) has done fairly well since the start of this year but a Loop Capital analyst recommends that investor move with caution from here on out.

AI mania could be a headwind for Google stock

Rob Sanderson downgraded the tech stock to “hold” this morning as he doesn’t see it a given that Google will maintain its dominance through the ongoing craze around artificial intelligence.

It’s noteworthy that the multinational made a series of AI focused announcements last week. Still, the analyst said in his research note:

We consider search competition from Microsoft a lesser threat than risk of displacement from behavioural change as users interact more with AI assistants to find information.

His $125 price objective on Google stock still represents about a 7.0% upside from here, though.

Google should focus more on cutting costs

Earlier this year, the tech behemoth announced plans of lowering its headcount by a whopping 12,000 to cut costs.

But Sanderson sees a need for more considering its expense per employee is still the highest among the big four tech companies. On the AI front, the analyst also said:

We disagree with management’s characterization that AI proliferation is similar to transition to mobile. Long-term structural uncertainties surrounding AI will keep investors nervous as landscape evolves and put a ceiling on valuation.

Nonetheless, Alphabet reported market-beating results for its first financial quarter last month as Invezz reported here. Versus the start of 2023, Google stock is up close to 30% at writing.  

The post Google stock just got a rare downgrade appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Editor's Pick

    Everynet, one of the world’s largest network operators for national LoRaWAN® networks, announces it is working with Amazon Web Services (AWS) to offer long-range...


    As more candidates throw their hats into the 2024 Presidential ring, I’d like to offer a proposal that should have immediate bipartisan support: stop...

    Editor's Pick

    The Internet of Things (IoT) is changing the way we interact with technology, and it has the potential to revolutionize the way we manage...

    Editor's Pick

    Semtech Corporation and esteemed engineering design services firm, Connected Development, today announced the launch of the new XCVR Development Board and Reference Design integrating...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023