Google: Time To Press Pause (Rating Downgrade)


  • After a 19% gain since April, I now issue a Hold rating due to current valuations. I believe in Alphabet’s long-term growth but see limited value at present.
  • Alphabet’s Gemini models face current user experience issues. Despite this, long-term AI growth is promising, supported by CEO Sundar Pichai’s vision and ethical approach.
  • Alphabet shows strong cloud growth but faces competition and regulatory risks. A 10-year price target of $823.75 implies a 15.5% CAGR, but caution is warranted.

Pause symbol or push button on blue background. Taking a break or resting concept. Audio or music pause.

cagkansayin/iStock via Getty Images

I last covered Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) (NEOE:GOOG:CA) in April; at the time, I put out a Buy rating, and since then, the stock has gained 19% in price. Since my

Analyst’s Disclosure: I/we have a beneficial long position in the shares of GOOGL, AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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