Analysts Slash Google Stock (GOOGL) Forecast on AI Fears
Google just took a hit from Wall Street. In the past two weeks, analysts at UBS, Scotiabank, and Jefferies cut price targets or earnings forecasts for Alphabet (GOOGL), throwing fresh doubts on its AI strategy and growth outlook. The tech giant may be a cornerstone of Silicon Valley, but recent warnings show even giants can lose their footing.
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UBS and Scotiabank Cut Google Targets
The first crack came from UBS on April 14. The firm lowered its price target for Alphabet from $209 to $173, holding a 'Neutral' rating. This move came after Alphabet's stock slipped 2.1% that week. UBS didn't mince words, pointing to market volatility and increasing AI competition as reasons for its cautious stance.
Scotiabank followed with its own cut on April 21. It trimmed its price target from $232 to $200, though it stuck with a 'Sector Outperform' rating. Scotiabank warned about revenue pressure and economic headwinds that could weigh on Alphabet's near-term performance. The cuts reflect a growing sense that Google's AI investments aren't delivering as quickly as some had hoped.
Jefferies Warns Big Tech to Reset Expectations
Jefferies added fuel to the fire earlier this month, sending a broader warning across Big Tech. In a note shared with Business Insider, Jefferies analysts called the current wave of global tariffs a 'free hall pass' for tech firms to reset profit goals. They argued that softening guidance now could cushion future disappointments.
Jefferies slashed price targets across 29 tech giants. Meta got the worst of it with a 17% cut, but Google wasn't spared either. The firm lowered Alphabet's earnings per share (EPS) estimate for 2025 by 2%. The key message? AI growth is slowing down. Costs are rising. It's time for Big Tech to come back down to earth.
Is GOOGL Stock a Good Buy?
Even with these downgrades, many analysts still back Google. According to TipRanks, Alphabet earns a Moderate Buy consensus rating based on 27 Buys, 10 Holds, and zero Sell ratings assigned in the past three months. GOOGL's average price target of $196.94 per share implies a 30% upside potential from current levels.
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