Just before announcing impressive first-quarter earnings on April 25, Google (NASDAQ:GOOGL) (NASDAQ:GOOG) laid off at least 200 employees from its Core teams, which is a group that’s central to the company’s key technical and security operations. According to CNBC, the restructuring effort includes relocating some positions to India and Mexico. This move is part of a broader strategy to streamline operations and add more artificial intelligence to its products. As a result, shares rose slightly in today’s trading.
Interestingly, these changes come after Google announced its first-ever dividend and a substantial $70 billion buyback plan. This will likely cause frustration among the employees who were let go, as they could point to this massive buyback package as a source of funds to invest in the company’s future rather than job cuts.
Nevertheless, Google has allocated billions of dollars into share repurchases over the years, as indicated by the image below.
What Is the Target Price of GOOGL Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 31 Buys, seven Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 55% rally in its share price over the past year, the average GOOGL price target of $189.79 per share implies 15.87% upside potential.
