Alphabet (GOOGL) owned Google position remains strong - Morgan Stanley
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Morgan Stanley analyst Brian Nowak told investors in a note Wednesday that its AlphaWise survey shows Alphabet (NASDAQ: GOOGL) owned Google's position at the top of the e-commerce funnel remains strong.
Nowak explained that even Amazon Prime members report starting on Google more often than Amazon, and the data supports why the firm is constructive on Google.
"The holiday shopping season is upon us as we continue our series monitoring GOOGL's position at the top of the e-commerce funnel. As written, we see GOOGL's retail search innovation the past few years bringing more merchants and inventory across improved GOOGL e-commerce experiences (Search, Maps, YouTube etc.) and our AlphaWise survey data continue to show how e-commerce consumer behavior (including Prime member behavior) remains strong on GOOGL," wrote Nowak. "With e-commerce/CPG making up ~42% of total online
advertising we see this position as being key to driving durable paid search growth as/whether the consumer weakens."
The analyst provided three key takeaways from the Alphawise survey, including more Americans visiting Google (including YouTube) first when researching products online, 35% of Americans visit Google first when comparing prices online, and even when consumers know what products they want to purchase, 18% still go to Google first.
On travel, Morgan Stanley stated that Google's "position at the top of the online travel search funnel remains strong as well (37% start on GOOGL when researching travel online vs. 20% on EXPE and 15% on BKNG)."
By Sam Boughedda
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