Zacks Investment Research Downgrades Alphabet (GOOGL) to Hold

Alphabet (NASDAQ:GOOGL) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Monday.

According to Zacks, “Alphabet's strengthening cloud unit is aiding substantial revenue growth. Moreover, the growing momentum of Google Cloud and expanding data centers will continue to bolster the company’s presence in the cloud space. Also, major updates in its search segment are enhancing the search results which is a tailwind. Additionally, Google’s strong focus on the innovation of its AI techniques and Android OS along with growing presence in the home automation space are driving its top-line growth further. Notably, the stock has outperformed the industry it belongs to in the past one year. However, the company’s growing litigation issues might hurt its profitability. Also, it's increased spending on consumer gadgets, YouTube video app and cloud computing services remain concerns. Also, rising competition in the online ad market.”

GOOGL has been the topic of several other reports. Morgan Stanley reaffirmed an “overweight” rating and set a $1,500.00 price objective (down from $1,515.00) on shares of Alphabet in a report on Wednesday, November 14th. Bank of America decreased their price objective on Alphabet from $1,390.00 to $1,350.00 and set a “buy” rating on the stock in a report on Friday, October 26th. Goldman Sachs Group decreased their price objective on Alphabet from $1,500.00 to $1,300.00 and set a “buy” rating on the stock in a report on Friday, October 26th. Nomura reissued a “buy” rating and set a $1,400.00 target price on shares of Alphabet in a research report on Tuesday, December 4th. Finally, Pivotal Research cut their target price on Alphabet from $1,080.00 to $1,010.00 and set a “hold” rating on the stock in a research report on Friday, October 12th. Four analysts have rated the stock with a hold rating and twenty-nine have issued a buy rating to the company’s stock. Alphabet has an average rating of “Buy” and an average target price of $1,344.59.

NASDAQ GOOGL traded down $8.66 during trading hours on Monday, reaching $1,055.81. The company’s stock had a trading volume of 610,580 shares, compared to its average volume of 1,794,315. The company has a current ratio of 4.14, a quick ratio of 4.10 and a debt-to-equity ratio of 0.02. Alphabet has a 1 year low of $977.66 and a 1 year high of $1,291.44. The stock has a market cap of $752.70 billion, a PE ratio of 32.94, a P/E/G ratio of 1.26 and a beta of 1.00.

Alphabet (NASDAQ:GOOGL) last posted its quarterly earnings results on Thursday, October 25th. The information services provider reported $13.06 EPS for the quarter, topping the Zacks’ consensus estimate of $10.54 by $2.52. Alphabet had a return on equity of 19.40% and a net margin of 14.45%. The company had revenue of $27.16 billion for the quarter, compared to analysts’ expectations of $27.32 billion. On average, analysts forecast that Alphabet will post 45.32 EPS for the current fiscal year.

Several large investors have recently made changes to their positions in GOOGL. Capital Insight Partners LLC grew its holdings in Alphabet by 0.4% in the fourth quarter. Capital Insight Partners LLC now owns 2,554 shares of the information services provider’s stock valued at $2,669,000 after purchasing an additional 10 shares during the period. HT Partners LLC grew its holdings in Alphabet by 4.0% in the fourth quarter. HT Partners LLC now owns 365 shares of the information services provider’s stock valued at $381,000 after purchasing an additional 14 shares during the period. Mitchell Mcleod Pugh & Williams Inc. grew its holdings in Alphabet by 1.0% in the fourth quarter. Mitchell Mcleod Pugh & Williams Inc. now owns 1,744 shares of the information services provider’s stock valued at $1,823,000 after purchasing an additional 18 shares during the period. GFS Advisors LLC grew its holdings in Alphabet by 1.2% in the third quarter. GFS Advisors LLC now owns 2,106 shares of the information services provider’s stock valued at $2,542,000 after purchasing an additional 25 shares during the period. Finally, Arlington Partners LLC grew its holdings in Alphabet by 3.3% in the fourth quarter. Arlington Partners LLC now owns 834 shares of the information services provider’s stock valued at $871,000 after purchasing an additional 27 shares during the period. Hedge funds and other institutional investors own 33.32% of the company’s stock.

About Alphabet

Alphabet Inc, through its subsidiaries, provides online advertising services in the United States and internationally. The company offers performance and brand advertising services. It operates through Google and Other Bets segments. The Google segment includes principal Internet products, such as Ads, Android, Chrome, Commerce, Google Cloud, Google Maps, Google Play, Hardware, Search, and YouTube, as well as technical infrastructure and newer efforts, including Virtual Reality.

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