(CercleFinance.com) – Mizuho maintained its buy recommendation on Alphabet stock on Friday, which it still has a price target of $135.
While the Internet giant is to unveil its first quarter results next Tuesday, the analyst warns that the advertising market remains complicated due to the high level of inflation and the tightening of advertisers’ budgets.
Regarding the concerns expressed by investors about the group’s advances in generative artificial intelligence, Mizuho considers them exaggerated given the limited implications of this technology for the moment.
The professional also points out that Google seems to have managed to maintain despite everything substantial market shares with its search engine.
Finally, Mizuho estimates that Alphabet could reduce its cost base by $7.5 billion in 2024, equivalent to 2.2% of its revenue, through further job cuts and optimization of its expenses, which could add 8% growth to its operating profit next year.
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