Alphabet (GOOGL) PT Lowered to $200 at Cantor Fitzgerald

Cantor Fitzgerald analyst Deepak Mathivanan lowered the price target on Alphabet (NASDAQ: GOOGL) to $200.00 (from $210.00) while maintaining a Neutral rating.

He said, "GOOGL’s 4Q results were largely in line with Street estimates on the top line, but EBIT/EPS came in 2% better (Visible Alpha). At a segment level, Search grew 13% ex-FX, largely in line with 3Q. YT also had a stable performance in 4Q while benefitting from election advertising. Meanwhile, Cloud revenue growth decelerated by 5-pts on 3-pt tougher comp partly due to capacity constraints. Without providing specific guidance, GOOGL noted incremental FX headwinds, tougher comp from insurance ad spending, and extra day as variables that are likely to weigh on 1Q growth vs. 4Q. On capex, the company also guided FY25E total capex to $75B (+43% y/y) to support technical infrastructure buildout, well above Street/CF forecasts and buyside expects. Overall, there were few surprises on GOOGL’s 4Q results other than the capex guide. That said, there was little to get incrementally excited about for 2025. GOOGL continues to make strong advancements in several cutting-edge technologies including AI but risks to core Search business from competition/antitrust remain elevated. We reiterate our Neutral rating and revise our PT to $200 (vs. $210 previously)."

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