AI offers both benefits and risks for tech giant Alphabet (GOOGL), according to 4.5-star analyst Barton Crockett, who is a senior research analyst at Rosenblatt Securities. In a recent CNBC interview, Crockett said that he has a neutral rating on the stock and a $189 price target. He also explained that while AI is helping Alphabet grow areas like Google Cloud, it could hurt Google’s core search business as well, which makes his overall view cautious.
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Crockett pointed out that competition in AI has grown very quickly, with companies like Microsoft-backed OpenAI (MSFT) and Meta (META) now challenging Google’s position. Even though Google has launched tools like Google Beam and says it has 400 million users for Gemini, there are still big questions, like how advertising will work in AI search and whether Google can keep its lead in a fast-changing market. These unknowns are a big part of why Crockett hasn’t changed his neutral stance over the past year.
He also mentioned that there are legal risks, such as the ongoing antitrust trial, which could limit Google’s ability to stay the default search engine on iPhones, one of its key advantages. While Crockett believes that Alphabet has strong fundamentals, he said the uncertainty around AI and legal issues makes it understandable if investors choose to look elsewhere. In his words, “It’s all right not to make Google the next place to put your next dollar.”
Is Google Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 28 Buys and nine Holds assigned in the past three months. Furthermore, the average GOOGL price target of $197.69 per share implies 20.4% upside potential from current levels.
