Monness analyst Brian White has maintained their neutral stance on GOOGL stock, giving a Hold rating on March 14.
Brian White’s rating is based on a combination of factors including Alphabet’s recent strategic decisions and financial outlook. The company’s announcement to acquire Wiz for $32 billion in cash, marking the largest transaction in its history, is a significant move aimed at enhancing its cloud capabilities and security offerings. However, this acquisition comes at a high cost, contributing to Alphabet’s substantial capital expenditure plans, which are expected to reach $75 billion this year.
While Alphabet is well-positioned to benefit from trends in digital advertising and cloud services, the acquisition of Wiz represents a rich multiple, raising concerns about the financial implications in the current market environment. Additionally, the competitive landscape and antitrust issues present ongoing challenges for the company. These factors collectively contribute to the Hold rating, reflecting a cautious stance amid the potential risks and rewards associated with Alphabet’s strategic pursuits.