Is Generative AI Friend Or Foe For Google? Analyst Withdraws Bullish Rating
Portfolio Pulse from Priya Nigam
UBS analyst Lloyd Walmsley downgraded Alphabet's rating from Buy to Neutral, citing medium-term revenue risk due to new search displacing ad inventory with Generative AI responses. He raised the price target from $123 to $132.
June 26, 2023 | 2:10 pm
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NEGATIVE IMPACT
Alphabet's rating downgraded from Buy to Neutral by UBS analyst due to medium-term revenue risk from Generative AI responses. Price target raised from $123 to $132.
The downgrade from Buy to Neutral indicates that the analyst sees limited upside potential for Alphabet's stock in the short term. The medium-term revenue risk from Generative AI responses could negatively impact the company's growth, leading to a potential decline in the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Alphabet's rating downgraded from Buy to Neutral by UBS analyst due to medium-term revenue risk from Generative AI responses. Price target raised from $123 to $132.
The downgrade from Buy to Neutral indicates that the analyst sees limited upside potential for Alphabet's stock in the short term. The medium-term revenue risk from Generative AI responses could negatively impact the company's growth, leading to a potential decline in the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100