Google: All Good Things Must Come To An End (Rating Downgrade)

Summary:

  • The bullish valuation setup for Google shares in January has flipped to a bearish setting in October-November.
  • Rising interest rates during 2023 and a potential recession in 2024 will negatively impact Google’s future earnings and valuation.
  • The increasing number of antitrust lawsuits against Google is a significant risk factor for the company and investors.
  • My fair value target for share pricing of $125 earlier in the year has declined to $110 today.

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I last wrote about Google/Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) with a bullish January viewpoint here. I projected a +30% to +50% gain for the year, which has largely played out as expected. However, far lower valuations 10 months ago, combined with easier to


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