Alphabet (NASDAQ:GOOG) Stock Gets Downgrade from Citizens Jmp

Key Points

• Citizens Jmp downgraded Alphabet from “outperform” to “market perform,” adding to mixed analyst sentiment. Despite the downgrade, the broader consensus remains “Moderate Buy,” with an average price target of $418.85.
• Alphabet reported quarterly EPS of $2.12, below the $3.01 analyst consensus, while revenue of $127.58 billion narrowly missed estimates. Revenue still grew 24.7% year over year, supported by continued business expansion.
• Alphabet shares were trading at $321.89, up 1.6%, with the stock below both its 50-day and 200-day moving averages. Institutional investors continued to increase their holdings, collectively owning 27.26% of the company.

Alphabet (NASDAQ:GOOG - Get Free Report) was downgraded by research analysts at Citizens Jmp from an "outperform" rating to a "market perform" rating in a research report issued to clients and investors on Thursday, Briefing.com reports.

A number of other equities research analysts have also recently weighed in on the company. Piper Sandler set a $405.00 price objective on Alphabet in a research note on Thursday. Arete Research lifted their target price on shares of Alphabet from $425.00 to $450.00 in a report on Monday, July 6th. DA Davidson decreased their price target on shares of Alphabet from $375.00 to $350.00 and set a "neutral" rating for the company in a research note on Thursday, July 23rd. BMO Capital Markets reissued an "outperform" rating and set a $480.00 price objective on shares of Alphabet in a research report on Tuesday, October 20th. Finally, Stifel Nicolaus set a $485.00 price objective on shares of Alphabet in a research report on Thursday, October 8th. Six investment analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $418.85.

Alphabet Trading Up 1.6%

NASDAQ GOOG opened at $321.89 on Thursday. The firm's fifty day moving average price is $338.12 and its 200 day moving average price is $338.76. Alphabet has a 12 month low of $268.43 and a 12 month high of $404.47. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.72 and a quick ratio of 2.64. The company has a market capitalization of $3.94 trillion, a price-to-earnings ratio of 16.17, a price-to-earnings-growth ratio of 0.91 and a beta of 1.19.

Alphabet (NASDAQ:GOOG - Get Free Report) last issued its quarterly earnings data on Thursday, October 29th. The information services provider reported $2.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.01 by ($0.89). The firm had revenue of $127.58 billion for the quarter, compared to analysts' expectations of $127.97 billion. Alphabet had a return on equity of 51.32% and a net margin of 54.77%. The business's revenue for the quarter was up 24.7% compared to the same quarter last year. During the same period in the previous year, the business posted $2.87 EPS. On average, sell-side analysts expect that Alphabet will post 20.60 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Frances Arnold sold 83 shares of the company's stock in a transaction that occurred on Wednesday, September 30th. The stock was sold at an average price of $340.45, for a total transaction of $28,257.35. Following the completion of the sale, the director owned 19,076 shares in the company, valued at $6,494,424.20. This represents a 0.43% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders own 12.99% of the company's stock.

Hedge Funds Weigh In On Alphabet

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. ProShare Advisors LLC lifted its position in Alphabet by 4.2% in the third quarter. ProShare Advisors LLC now owns 2,679,204 shares of the information services provider's stock valued at $912,912,000 after acquiring an additional 107,924 shares during the last quarter. Vise Technologies Inc. boosted its stake in Alphabet by 42.0% in the third quarter. Vise Technologies Inc. now owns 269,929 shares of the information services provider's stock valued at $91,976,000 after acquiring an additional 79,804 shares in the last quarter. Investment Partners LTD. boosted its stake in Alphabet by 74.3% in the third quarter. Investment Partners LTD. now owns 14,132 shares of the information services provider's stock valued at $4,815,000 after acquiring an additional 6,023 shares in the last quarter. Summit Global Investments grew its holdings in shares of Alphabet by 13.2% during the third quarter. Summit Global Investments now owns 22,920 shares of the information services provider's stock worth $7,810,000 after purchasing an additional 2,674 shares during the last quarter. Finally, Marin Bay Wealth Advisors LLC grew its holdings in shares of Alphabet by 5.0% during the third quarter. Marin Bay Wealth Advisors LLC now owns 6,351 shares of the information services provider's stock worth $2,164,000 after purchasing an additional 304 shares during the last quarter. 27.26% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Google Cloud growth was a major bright spot: Revenue more than doubled year over year to approximately $30.7 billion, supported by enterprise AI demand and improving margins. Analysts argue the strength could support Alphabet’s long-term growth despite near-term concerns. Alphabet Q3: The Selloff Makes Sense, So Does The Buy
• Positive Sentiment: Alphabet’s AI chip opportunity is expanding: OpenAI reportedly plans to purchase Google’s tensor processing units, while Oracle is making the chips available through its cloud platform. The developments could create a new revenue stream and reduce reliance on Nvidia’s infrastructure. Google alters cloud playbook to sell more AI chips
• Positive Sentiment: Some analysts remain bullish: Pivotal Research reaffirmed a Buy rating with a $475 price target, citing cloud and AI strength. Technical commentary also described the stock as oversold, potentially encouraging dip buyers. Alphabet Buy rating reaffirmed
• Neutral Sentiment: New AI products offer longer-term upside but limited immediate financial impact: Alphabet launched Gemini 4 Carbon, expanded AI-powered Search ads internationally, and previewed crypto-custody security tools for financial institutions.
• Neutral Sentiment: Legal headlines added volatility: Several law firms publicized securities-fraud lawsuits and lead-plaintiff deadlines related to alleged disclosures about Gemini development. The announcements appear largely procedural but add reputational and litigation risk. Alphabet securities lawsuit announcement
• Negative Sentiment: Third-quarter earnings missed expectations: Alphabet reported EPS of $2.12 versus roughly $3.01 expected, while revenue of $127.58 billion was slightly below consensus. Profit was also down from the prior year, overshadowing 24.7% revenue growth.
• Negative Sentiment: Advertising momentum weakened: Search growth slowed and YouTube advertising revenue of $11.2 billion missed estimates. Investors are concerned that AI-based search and competing platforms could pressure Alphabet’s core advertising engine. Google shares fall as ad revenue misses estimates
• Negative Sentiment: AI investment is straining cash flow: Capital expenditures reached approximately $51.4 billion and quarterly free cash flow turned negative at about $9.1 billion. The Other Bets division, including Waymo, also posted more than $2 billion in operating losses.

About Alphabet

Alphabet Inc is a technology holding company best known as the parent organization of Google. Founded in 2015 through a corporate restructuring, Alphabet oversees Google and a collection of businesses focused on technology, online services, communications, artificial intelligence, and other emerging areas.

Google's principal products and services include its internet search engine, digital advertising platforms, YouTube, Android, Chrome, Google Maps, Google Play, and Google Workspace. The company also provides cloud computing, data storage, cybersecurity, productivity, and artificial intelligence services through Google Cloud.

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