Alphabet hammered: 6 big analyst cuts
Investing.com — Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades for Alphabet, Albemarle , Corning, TransUnion , Affirm Holdings , and Farfetch.
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After Alphabet's (NASDAQ:GOOGL) Q3 earnings release late Tuesday, the Google operator was taking a beating and lost its Buy rating at Monness, Crespi, Hardt and a number of Wall Street analysts trimmed their price targets on the stock.
GOOGL shares were recently tumbling more than 9%.
The search giant beat on top and bottom lines, but cloud revenue rose less than expected — it came to $8.4 billion, a 22% climb, vs. expectations for $8.6B — and operating income was also short of expectations at $21.34B. Overall earnings came to $1.55 per share, ahead of the $1.46 average target, and total revenue of $76.7B beat the $75.9B estimate.
Monness, Crespi, Hardt analysts called the operating profit result «disappointing» and characterized its earnings call as «opaque.» They said they believe the company is well positioned across a number of dimensions, including AI innovations and its «leaner cost structure,» but that «regulatory headwinds persist, competition is dynamic, and we believe the darkest days of this downturn are ahead of us.»
Elsewhere, Citi highlighted the poor operating income result as well. Bernstein acknowledged the solid top line, but wrote, «margin contraction and a soft cloud print weighs heavily on the question 'why buy Google here?'
Bernstein trimmed the price target by $5 to $135 while keeping its Market Perform rating on the stock, and Stifel cut its own price target by $9 to $145 — although kept its Buy rating on GOOGL.
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