April 23 - Alphabet (GOOG, Financial) is due to release its first-quarter earnings this week, with analysts still largely positive but scaling back their near-term expectations.
Major brokerages, including TD Cowen, UBS, and Scotiabank, have trimmed their 12-month price targets to reflect shifting market dynamics. TD Cowen now sees the stock at $195, down from $210. UBS lowered its target to $173 from $209, while Scotiabank revised its estimate to $200 from $232. All three firms continue to rate Alphabet as a Buy.
The cautious stance comes as Alphabet shares have fallen 19% year-to-date. Analysts cite ongoing legal pressures, particularly a recent U.S. court ruling that found Google maintained illegal monopolies in the ad market, along with broader economic headwinds.
Investors are eyeing updates on artificial intelligence, ads, and cloud performance. Google's Gemini AI model, now embedded across Search, YouTube, and Cloud, is expected to be a focal point. The ad business remains steady, but questions linger over its durability. Cloud remains a growth area as Alphabet competes with Amazon (AMZN, Financial) and Microsoft (MSFT, Financial).
Wall Street expects Alphabet to post revenue of $89.2 billion and earnings of $2.01 per share.
