Alphabet Q3 Earnings Won’t Be Catalyst Google Investors Are Hoping For, But Stock Still An ‘Attractive’ Buy, Analyst Says – Alphabet (NASDAQ:GOOG), Amazon.com (NASDAQ:AMZN)

Wedbush analyst Scott Devitt has reiterated an Outperform rating and $205 price target on Alphabet Inc. GOOG ahead of earnings on Oct. 29. Here’s what you need to know.

What To Know: The Wedbush analyst released a new note on Wednesday calling Alphabet an “above average company” with a “below average multiple.”

While Alphabet’s advertising growth estimates for the quarter should be achievable, the potential for significant upside is limited, Devitt said. He pointed to mixed feedback from Wedbush’s third-quarter Digital Advertising Survey and recent data from Skai that showed a slowdown in Google Search growth.

Additionally, competitive pressure from Amazon.com Inc’s AMZN Prime Video ads and increased digital video ad inventory could weigh on YouTube’s performance, the analyst said. Devitt expects both Google Search and YouTube Ads to grow by 11.5% year-over-year, though YouTube’s growth may slightly miss consensus estimates, he said.

“Sentiment is mixed for Alphabet relative to mega cap internet peers as investors continue to weigh potential regulatory headwinds and the risk of generative AI to the search business,” the analyst said.

See Also: Hong Kong Bans WhatsApp And Google Drive On Civil Servants’ Work Computers Citing Security Concerns

Devitt also highlighted regulatory risks surrounding Alphabet, particularly the ongoing Justice Department case related to search. He said any major business model impact from these cases is likely years away, but noted that key dates are approaching.

While these challenges create headline risk, the components of Google’s adtech business under scrutiny represent less than 8% of gross revenue and just 2% of operating profit, Devitt said.

Despite these risks, Devitt remains optimistic about Alphabet’s transition to generative AI in search, which has shown promising user engagement. He believes this shift will create new monetization opportunities over time. With Alphabet trading at a valuation below the S&P 500 and its mega-cap peers, Devitt reiterated an Outperform rating heading into earnings next week.

“While we don’t view the upcoming quarterly report as a likely catalyst for Alphabet, we do think shares are attractive at current levels with shares trading below the market multiple,” the Wedbush analyst said.

GOOG Price Action: Alphabet shares were up 0.12% at $164.66 at the time of writing Thursday, according to Benzinga Pro.

Read Next

Photo: Pixie Me via Shutterstock.

Market News and Data brought to you by Benzinga APIs

Source link

Visited 1 times, 1 visit(s) today

Related Article

Why Market Indexes Aren’t Panicking Today

Wall Street ended this volatile week on a quiet note. As of 2 p.m. ET, the leading market indexes remained well within 1% of Thursday’s closing scores. The Dow Jones Industrial Average (DJINDICES: ^DJI) made the biggest move, sliding 0.5% lower. The Nasdaq Composite (NASDAQINDEX: ^IXIC) shows a 0.3% gain right now, down from a

2 Recession Resistant Dividend Stocks to Buy Now While They’re Still Cheap

When a recession hits, investors tend to take their money out of speculative, high-risk stocks and put it into safer companies, those with businesses built to perform relatively well across the entire economic cycle. Now might be a good time to at least explore doing so. We aren’t sure that a recession will hit soon,

1 Reason to Buy and Hold Costco Stock for the Next 10 Years

It’s difficult to know what’s going to happen in the stock market tomorrow, let alone 10 years from now. Even though no one has an investing crystal ball, the good news is that there are still durable businesses that have and can benefit from and also withstand anything the economy throws at them. Will AI

Number of Shares and Voting Rights of ADOCIA as of March 31st, 2026

LYON, France, April 10, 2026–(BUSINESS WIRE)–Regulatory News: Pursuant to the provisions of article L. 233-8 II of the French “Code de Commerce” and article 223-16 of the General Regulation of the French stock-market authorities (Autorité des Marchés Financiers, or “AMF”), ADOCIA SA (Paris:ADOC), a French société anonyme (corporation), 115, avenue Lacassagne, 69003 Lyon (Euronext Paris:

8 Key Items Shaping the Stock Market Friday: Switch to Risk-Off Mode?

Risk-On and Risk-Off These are the early headlines and other items poised to influence the market at the start of trading Friday. As we share this collection of market drivers, U.S. equity futures point to a mixed open. 1. The U.S. raced Thursday to keep Israel’s war in Lebanon from derailing talks with Iran this

Hong Kong Stock Market Barometer

①Geopolitical sentiment cools, the Hang Seng Index gains and then loses the 26,000-point level; what are the characteristics of the short-term market? ②The market refocuses on high-elasticity assets; which sectors are favored by capital? Cailian Press, April 10 (Editor: Feng Yi) As geopolitical sentiment further eased, the Hong Kong stock market became active again today.

March Core CPI in the US came in below expectations, with major futures indexes edging higher; Lumentum’s capacity for 2028 is facing sell-out, driving strong pre-market performance in the optical communications sector; CoreWeave surged ove

Market Snapshot Before the market opened on Wednesday, Nasdaq 100 futures rose by 0.15%, S&P 500 futures increased by 0.07%, Dow futures declined by 0.02%, U.S. crude oil advanced by 0.04%, and spot gold fell by 0.72%. As the Middle East conflict and Iran’s blockade of the Strait of Hormuz triggered a surge in energy

New to Investing? Here’s Why Amazon Stock Is a Great First Buy.

Getting started in the stock market can feel overwhelming. With thousands of companies to choose from, it’s hard to know where to begin, especially if you’re investing your first $500 or $1,000. One simple approach is to start with a business you already understand. And few companies are as familiar or as deeply embedded in

US Stock Market Today S&P 500 Futures Slip As Inflation Jitters Meet Rate Relief

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St’s investing ideas for FREE. US stock futures are slightly softer this morning, with E-mini S&P 500 and Nasdaq-100 contracts dipping about 0.1%, as investors weigh hotter inflation signals against some relief on borrowing costs. Markets expect March consumer prices to

Cheap Valuations and Growing Payouts

The midstream energy space has long been one of the go-to places for investors looking to find stocks with high yields and growing payouts. In many cases, these companies act largely as energy toll rolls, creating highly visible cash flow streams that help support robust distributions. What some investors may not realize, though, is that the

Palantir Is Trading at 106 Times Forward Earnings. Here’s Why This Artificial Intelligence (AI) Stock Could Still Surprise You.

Sometimes, a single number can stop investors cold in their tracks. Slap a forward price-to-earnings (P/E) multiple of 106 on any stock and Wall Street’s conventional wisdom yells, “Run for the hills.” But what if the stock market’s conventional wisdom is losing its relevance, given how rapidly artificial intelligence (AI) is changing everything? In my

Could Investing $10,000 in IWM Make You a Millionaire?

If you’re feeling nervous about recent downturns in tech stocks and want to invest your money into a different part of the market, the iShares Russell 2000 ETF (NYSEMKT: IWM) might be on your radar. This small-cap stock ETF gives you exposure to nearly 2,000 small publicly traded U.S. companies. Buying small-cap stocks can be

3 Asian Stocks That Might Be Priced Below Their Estimated Value In April 2026

As tensions in the Middle East and energy market volatility continue to influence global markets, Asian equities are navigating a complex landscape of geopolitical risks and economic uncertainties. Amid these challenges, investors often seek stocks that may be undervalued relative to their intrinsic worth, offering potential opportunities for those who prioritize fundamental analysis over short-term

Dow Swings Higher to Add 275 Points: Stock Market Today

(Image credit: Getty Images) A choppy start for stocks on Thursday turned into a positive finish as market participants weighed headlines on a fragile U.S.-Iran ceasefire. The day’s upside was sparked by a Bloomberg report that suggested Israel is prepared to hold negotiations with Lebanon, clearing a potential overhang in peace talks in the Middle

An Unstoppable Dividend Stock to Buy If There’s a Stock Market Sell-Off

Source: Getty Images Written by Joey Frenette at The Motley Fool Canada If the current wave of volatility sends broad markets closer to a bear market, investors should be ready to deploy new money into stocks, even if it’s more painful to do so. Of course, Wednesday’s turnaround session (one of the best days stocks

Hong Kong Stock Market Movement

Shares of Chinese brokerages led the gains. As of press time, CITIC Securities (06030) surged 9.51%, trading at HKD 27.2; Guolian Minsheng (01456) climbed 9.43%, trading at HKD 4.76. According to Zhitong Finance, Chinese brokerages are leading the gains. As of press time, CITIC Securities (06030.HK) was up 9.51% at HKD 27.2; Guolian Minsheng (01456.HK)

0
Would love your thoughts, please comment.x
()
x