Stock dips for Alphabet due to AI-Turbo setbacks; regulatory bodies remain vigilant
In the dynamic world of technology, Alphabet Inc. has reached a new 52-week high, fuelled by recent advancements in Artificial Intelligence (AI). However, the sustainability of this stock rally is uncertain due to regulatory risks that lie ahead.
The latest analysis, published on September 19, provides valuable insights for investors considering whether to buy or sell Alphabet stock. Both investment banks maintain an overweight rating for Alphabet, indicating a positive outlook. The current recommendation of stock analysts is predominantly to buy, with 55 out of 68 analysts advising a buy and 13 recommending holding.
The optimism among analysts is based on the growth potential of Alphabet's advancing AI strategy. The company has made significant strides, integrating its Gemini AI into the Chrome browser, marking a significant update in the browser's history. This integration allows users in the USA to complete tasks across multiple tabs, summarize webpages, and access Google services like Calendar or Maps directly.
The integration is expected to strengthen Alphabet's position in the AI race due to the widespread use of Chrome. JMP Securities and Piper Sandler have both increased their price targets for Alphabet, with JMP raising its target from 250 to 290 dollars and Piper Sandler raising its target from 220 to 285 dollars.
However, the European Commission has fined Alphabet 2.95 billion euros for anti-competitive practices in the advertising business. Moreover, the US Ad-Tech cartel case trial is set to begin on September 22, with the Department of Justice potentially demanding the separation of central advertising technology divisions. These regulatory challenges could potentially affect Alphabet's business model.
The latest analysis suggests a potential decision for Alphabet shareholders regarding buying or selling the stock. The average price target for 2026 is $229.50, which is about 10% below the current price, indicating moderate upside potential with a positive outlook overall. For more information, please follow the provided link.
It is essential for Alphabet shareholders to closely monitor these developments, as the sustainability of this stock rally remains uncertain.
