Alphabet’s (NASDAQ:GOOGL) Google is once again cutting its staff, according to the Wall Street Journal. Per the report, Google recently terminated hundreds of employees across its business units, highlighting the company’s ongoing efforts to trim costs. It’s important to highlight that the technology behemoth reduced its workforce by 12,000 in January 2023.
The move could be part of Google’s strategy to leverage Artificial Intelligence (AI) technology to improve its efficiency and margins. While the report didn’t disclose the scale of the layoffs, it noted that James Park and Eric Friedman, the co-founders of Fitbit, the manufacturer of health and fitness smartwatches, will also depart from the company.
Earlier in December 2023, The Information reported that the company was restructuring its advertising sales unit and considering workforce reductions. The report emphasized that Google is employing AI-powered advertising solutions to attract advertisers and generate multi-billion dollars from AI-led solutions. As the company is focusing on utilizing AI and cutting costs, let’s look at the Street’s recommendation for GOOGL stock.
Is Alphabet Stock a Buy, Sell, or Hold?
Alphabet stock has gained over 55% in value over the past year due to its ongoing investments in AI, leadership in the search business, and expected acceleration in ad revenues. Despite this notable growth, Wall Street is optimistic about its prospects.
With 27 Buys and seven Hold recommendations, GOOGL stock has a Strong Buy consensus rating. The analysts’ average price target of $154.90 implies 8.87% upside potential from current levels.
