Alphabet Strongly Advances Before Q3: Will Meta’s AI Search and DOJ Challenges Shift the Landscape?
Alphabet Inc, the parent company of Google, is set to disclose its third-quarter earnings this Wednesday. Analysts predict earnings per share (EPS) will be around $1.84, with anticipated revenues reaching $86.31 billion. This report will come out after trading hours in the stock market.
In the lead-up to Alphabet’s earnings announcement, the tech landscape is becoming more competitive. A notable point of interest is Meta Platforms Inc‘s recent announcement about developing its own artificial intelligence (AI)-driven search engine. By doing so, Meta aims to lessen its dependence on Google’s search services as well as those of Microsoft’s Bing. This move introduces a new player in the competitive search engine space, which could pose challenges for Alphabet.
Furthermore, regulatory scrutiny is increasing, with the U.S. Department of Justice (DOJ) contemplating measures to adjust Alphabet’s market dominance in the search sector. This situation could have significant implications for the company going forward.
Alphabet’s stock has shown impressive growth, with a year-to-date increase of 20.82% and a total rise of 34.13% in the past year. To provide a clearer picture, let’s analyze the performance of Alphabet’s stock and see how it compares to Wall Street expectations.
Current Stock Trends and Performance
Alphabet’s stock is experiencing strong bullish momentum. As of the latest trading session, the stock is priced at $167.22, showing that it is trading above several key moving averages. These include the five-day, 20-day, and 50-day exponential moving averages. Such positioning generally indicates positive investor sentiment and ongoing buying interest.
Support for this bullish trend is evident as the stock also trades above its historical moving averages: the eight-day ($164.19), 20-day ($164.47), and 50-day ($162.02). The MACD (Moving Average Convergence Divergence) indicator has a reading of 0.69, which suggests a positive momentum is continuing. However, the Relative Strength Index (RSI) stands at 59.31 and is trending upward, indicating that the stock may be approaching overbought territory. Investors should remain alert to potential market consolidation should buying pressure reduce.
Analyst Predictions and Price Expectations
Regarding analyst sentiment, the consensus rating for Alphabet’s stock is currently classified as a Buy, with an average price target of $201.36. Recent analyses from firms such as Wedbush, Truist Securities, and Needham suggest an even higher average target of $211.67. This indicates a potential upside of approximately 26.77% from the current stock price.
Analysts Laura Martin from Needham and Brent Thill from Jefferies assert that forced restructuring or breakup of Alphabet could reveal significant value, particularly in its core segments such as YouTube. Scott Devitt from Wedbush maintains an optimistic outlook based on Alphabet’s robust advertising growth and AI-enhanced user experience in search, noting that it continues to be favorably valued compared to its competitors.
As of the latest update, shares of Alphabet were trading at $166.97, reinforcing the company’s positive trajectory despite the evolving market context.
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