Alphabet price target lowered to $220 from $225 at KeyBanc

KeyBanc lowered the firm’s price target on Alphabet (GOOG) (GOOGL) to $220 from $225 and keeps an Overweight rating on the shares. Normally, a quarter where Search and YouTube exceeded expectations would drive a positive reaction in Alphabet’s shares. However, shares were indicated down about 8% after hours, which the firm attributes to a negative reaction toward management citing tough Search comps, FX headwinds, and higher capex and depreciation, none of which are overly surprising. KeyBanc acknowledges Cloud needing more capacity could have AI workload market share implications, and will wait to see how this evolves.