Mark Shmulik, an analyst from Bernstein, maintained the Hold rating on Alphabet Class A. The associated price target was raised to $305.00.
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Mark Shmulik has given his Hold rating due to a combination of factors impacting Alphabet Class A’s stock. The company has demonstrated impressive revenue growth, achieving its first $100 billion revenue quarter, with significant contributions across its segments, including Search, YouTube, and Cloud. However, while these achievements highlight Alphabet’s strong execution and market position, the substantial increase in capital expenditures raises concerns about future profitability.
Moreover, Alphabet’s advancements in AI, particularly with its Gemini-powered AI, indicate promising engagement metrics and user growth. Despite these positive developments, the increased spending to maintain its competitive edge in AI and other areas suggests a cautious approach. Therefore, while Alphabet shows potential for continued success, the elevated costs and competitive pressures justify a Hold rating at this time.
Shmulik covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Snap. According to TipRanks, Shmulik has an average return of 25.3% and a 74.31% success rate on recommended stocks.