Google – Upgrading To A Buy Ahead Of Earnings: Higher Growth In 2024

Summary:

  • We’re upgrading Google stock to a buy ahead of earnings season. We expect top-line growth to revisit the double-digit range toward 2H24.
  • We now see a clearer growth path for Google ad revenue, accounting for ~78% of total revenues, as digital ad spending picks up in 2024.
  • We’re not too concerned over the DOJ’s antitrust lawsuit regarding Alphabet’s alleged monopolistic and anticompetitive behaviors.
  • We expect Google Cloud to be relatively resilient and maintain higher double-digit profitable growth into 1H24 despite macro headwinds weighing on consumption growth as customers optimize spending in 2H23.
  • We see the stock outperforming the peer group in 2024 and recommend investors explore entry points at current levels.

Name sign above the entrance of Google offices in London, UK.

Alena Kravchenko

We’re upgrading Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) aka Google to a buy ahead of earnings, scheduled for October 24th. We now see a clearer growth path for Google ads revenue as digital ad


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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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