{"id":8912,"date":"2023-05-15T10:49:10","date_gmt":"2023-05-15T14:49:10","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/end-of-googles-dominance-stock-gets-rare-analyst-downgrade-over-ai-fears\/"},"modified":"2023-05-15T10:49:11","modified_gmt":"2023-05-15T14:49:11","slug":"end-of-googles-dominance-stock-gets-rare-analyst-downgrade-over-ai-fears","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=8912","title":{"rendered":"End Of Google\u2019s Dominance? Stock Gets Rare Analyst Downgrade Over AI Fears"},"content":{"rendered":"
\n

Topline<\/h2>\n

Loop Capital downgraded its stock rating for Google parent Alphabet from a buy to a hold in a buzzy Monday morning note to clients, throwing some cold water on last week\u2019s boundless optimism for the Google parent\u2019s future in the budding artificial intelligence sphere.<\/p>\n

Key Facts<\/h2>\n
\n
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The boom in AI chatbots could cause “behavioral changes” that make users less likely to rely on traditional search engines, placing a “ceiling” on Alphabet’s valuation, Loop Capital analysts Rob Sanderson and Alan Gould wrote in a Monday note.<\/p>\n<\/p><\/div>\n

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The strategists set a $118 target for Alphabet shares, a tick above the stock\u2019s $117 price Monday and well below the $130 average analyst target for the stock, according to FactSet.<\/p>\n<\/p><\/div>\n

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It\u2019s the first downgrade for Alphabet since at least March 3, per Factset.<\/p>\n<\/p><\/div>\n

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Shares of Alphabet tumbled as much as 1% in early Monday trading, moving against the tech-heavy Nasdaq\u2019s slight gains, though the stock is still up more than 10% over the past week as investors cheered on the company\u2019s Wednesday presentation outlining the incorporation of AI into various phases of its business.<\/p>\n

<\/fbs-ad>\n <\/div>\n

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Loop\u2019s skepticism on Alphabet comes not from concerns about the oft-discussed gains made by Microsoft in the AI space but rather about how generative AI chatbots like Microsoft-backed ChatGPT call into question Google\u2019s long-standing status as the primary gateway to the web, calling the shift among users a \u201ccompetitive force against its dominance in connecting users to information.\u201d<\/p>\n<\/p><\/div>\n<\/div>\n

Surprising Fact<\/h2>\n

Even if AI caps Alphabet\u2019s upside, it remains one of the largest companies on earth, with its $1.4 trillion market capitalization trailing only those of Apple, Microsoft and Saudi Aramco.<\/p>\n

Contra<\/h2>\n

Google has \u201cunmatched AI competencies\u201d and \u201cwill be a major beneficiary of AI adoption over the long-term,\u201d Sanderson and Gould clarified. That echoes the bullish sentiments expressed by many analysts following Google\u2019s I\/O developer conference; firms such as Bank of America, Goldman Sachs, UBS and JPMorgan reiterated their buy ratings for Alphabet in notes late last week.<\/p>\n

Tangent<\/h2>\n

Sanderson and Gould published another note early Monday upgrading Meta\u2019s stock from a hold to a buy, setting a $320 price target for the Facebook and Instagram parent, indicating 37% upside in what would be the stock\u2019s highest price since January 2022. Shifting macroeconomic tides and faith in Instagram Reels and Meta\u2019s AI push in advertising all serve as tailwinds for the stock, according to the strategists. Meta shares rallied 1% in early trading.<\/p>\n

<\/h2>\n

Google Insiders Are $9 Billion Richer After AI-Fueled Stock Rally (Forbes<\/em>)<\/p>\n

Google Adding AI To Search Engine For Some Users\u2014Closing In On Microsoft’s AI Push (Forbes<\/em>)<\/p>\n

Google\u2019s \u2018Peacetime\u2019 CEO Sundar Pichai Faces Criticism As The AI War Heats Up (Forbes<\/em>)<\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Topline Loop Capital downgraded its stock rating for Google parent Alphabet from a buy to a hold in a buzzy Monday morning note to clients, throwing some cold water on last week\u2019s boundless optimism for the Google parent\u2019s future in the budding artificial intelligence sphere. Key Facts The boom in AI chatbots could cause “behavioral […]<\/p>\n","protected":false},"author":1,"featured_media":8913,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-8912","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-markets","tag-featured"],"yoast_head":"\nEnd Of Google\u2019s Dominance? 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