From NASDAQ.: 2024-09-17 13:43:32

Alphabet stock (GOOG) is underperforming with just over 12% YTD gain, lagging the S&P 500 Index amid fears of a looming breakup due to an antitrust ruling. Analysts give it a “Strong Buy” rating, but regulatory risks and competition pose challenges. Is it a buy opportunity for Q4?

Alphabet (GOOG) has 82% “Strong Buy” or “Moderate Buy” ratings, down from 86% three months ago. Analysts like Rosenblatt and Bernstein downgraded while Evercore ISI cut target price. Despite concerns, GOOG trades at a discount with a forward P/E multiple of 20.4x. Is it undervalued for long-term investors?

Alphabet faces regulatory risks with potential litigations worth $100 billion from advertisers. Competition from Amazon, Uber, Disney, and Netflix adds pressure. AI advances threaten Google’s search dominance. But underappreciated assets like YouTube, Waymo, and Cloud could drive future growth. Will these factors make buying Alphabet stock worthwhile?

The regulatory risks for Alphabet are factored into its stock price, making it a potential buy for medium to long-term gains. The noise around regulatory issues will impact short-term price action, but Alphabet’s growth potential with its key assets could pay off for patient investors.



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