Ahead Of Earnings Analyst Boosts Amazon Amid Strong Ad Spending, Keeps Faith in Google's Ad Revenue Growth
Portfolio Pulse from Anusuya Lahiri
Mizuho analyst James Lee reiterated a Buy rating on Amazon (AMZN) and Alphabet (GOOGL), with price targets of $180 and $150 respectively. Lee's ad tracking shows both platforms gaining market share, with Amazon's ad spending and e-commerce revenue growth exceeding expectations. For Google, ad tracking was solid and advertising revenue is expected to be in line or modestly above consensus. However, Lee noted that Google's consensus operating expenditure growth for 2H23 appears aggressive without meaningful cost cuts.
October 20, 2023 | 6:12 pm
News sentiment analysis
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NEUTRAL IMPACT
Google's ad tracking was solid and advertising revenue is expected to be in line or modestly above consensus. However, consensus operating expenditure growth for 2H23 appears aggressive without meaningful cost cuts.
While Google's solid ad tracking and expected advertising revenue growth are positive signs, the analyst's concerns over aggressive operating expenditure growth could potentially offset these positives, leading to a neutral impact on the stock price in the short term.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 100
POSITIVE IMPACT
Amazon's ad spending and e-commerce revenue growth are exceeding expectations, leading to a Buy rating from Mizuho analyst.
The analyst's positive outlook on Amazon's ad spending and e-commerce revenue growth, along with the reiteration of a Buy rating, could potentially boost investor confidence and have a positive impact on the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100