Alphabet’s (NASDAQ:GOOGL) Google announced a restructuring in its finance division, signaling a shift towards prioritizing investments in artificial intelligence (AI) technology. A CNBC report highlighted that the company’s CFO, Ruth Porat, sent a memo informing employees about the company’s restructuring plan, including workforce reduction and relocation.
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Google is leveraging AI to improve its efficiency and margins. In a similar move, the tech giant announced the restructuring of its advertising sales unit in December 2023. The company is employing AI-powered solutions to attract advertisers. Though Porat didn’t disclose the scale of the layoffs, this is the second time Google has announced workforce reductions this year. In January 2024, the company terminated hundreds of employees across its business units.
As the company is focusing on utilizing AI, cutting costs, and streamlining operations, let’s look at the Street’s recommendation for GOOGL stock.
Is Alphabet a Buy, Sell, or Hold Today?
Thanks to its focus on lowering costs, GOOGL’s EPS jumped by about 27% in 2023. Further, GOOGL stock is up about 49% in one year, reflecting its efforts to lower costs and make aggressive investments in AI. Despite the notable increase in its share price, Wall Street recommends buying Alphabet stock.
Alphabet stock has 30 Buy and seven Hold recommendations for a Strong Buy consensus rating. The analysts’ average GOOGL stock price target is $167.51, implying 7.74% upside potential from current levels.
