Tech has been one of the hardest hit sectors as of late, as many of its large firms were still considered risk-on and overvalued when the economy took a turn. However, Google parent company Alphabet (GOOGL) was largely insulated from the damage, due in part to its ads segment being mostly protected from Apple's (AAPL) iOS 14.5 privacy update last summer.
Now, after weathering the storm, Brian White of Monness said he expects the stock to be steady and sound, heading into its earnings call on Tuesday. In his recent report, he noted that GOOGL performed better than the average stock in his coverage, and elaborated that "we believe Alphabet will continue to benefit from the secular digital ad trend and experience strength in the cloud."
White rated the stock a buy, and added a price target of $3,850 per share.
He is also excited for Alphabet's investor conference in mid-May, which could stir up some encouraging investor sentiment for the technology conglomerate.
Thus far, White stated that platforms like Google Search and Youtube Ads have been driving growth, largely undisturbed by Apple's software changes. Companies like Meta Platforms (FB) and Snap (SNAP), however, have much to worry about. (See Alphabet Stock Charts on TipRanks)
On the legislative front, the highly accurate analyst did admit that Alphabet will most likely see continued antitrust litigation in the U.S., and is currently dealing with some disruptions from the recently passed European Digital Markets Act (DMA).
On TipRanks, White is rated as #171 out of nearly 8,000 analysts. He has been correct on 65% of his stock picks, and has returned an average of 29.7% on each of them.
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