Over the past few months, Alphabet, Meta Platforms, and other major tech companies have seen a significant adjustment as investor demand for growth stocks drop. Investors are concerned about a potential recession and rising interest rates. The reason for significant adjustments is because theres less demand for growth stocks during inflation
Despite the considerable price target reduction, Google still provides a buy rating. At end of the first quarter, in March, Google hit the lowest price at $2.780and as of today, it is at $2.245.
We can see that the number is fallen. However, the company is still profitable because, based on the data on the first quarter, the net profit of ALPHABET reached $16.44 billion, compared with a profit of $17.93 billion in the same period a year earlier.
During this macroeconomic situation thus far, Google has performed better compared to other big tech companies. Although, Google (Alphabet) will still face some challenges like an increase in competition, government scrutiny, and the difficulty to earn a profit on the Google Cloud Platform.
According to analysts, Twitter and Meta still have Hold ratings increased by 1.2 percent, while Alphabet’s stock barely changed.