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Globe and Mail
27-04-2025
- Business
- Globe and Mail
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. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. 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. See more GOOGL analyst ratings Disclaimer & Disclosure Report an Issue
Globe and Mail
15-04-2025
- Business
- Globe and Mail
Intel Stock (NASDAQ:INTC) Slides as Griffin Cove Shows up, Production Methods Revealed
With all the recent drama around sold-off business stakes, we must keep in mind that products are chip stock Intel's (INTC) true bread and butter. And Intel's chip business is carrying on in earnest, with the new line, Griffin Cove, currently in development. We even have some more news about how Griffin Cove will be produced. But this combination of news items did little for investors, who sent shares down over 2% in Tuesday afternoon's trading. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. Griffin Cove, considered the 'great-grandchild of Lion Cove,' is currently under way in Intel's chip development centers, reports note. There is quite a bit riding on this processor line, as Intel has been underperforming for some time now, and Intel is having a tough time keeping up with its competitors. But Griffin Cove will have a little something different going for it, reports note, that may give it some edge. Griffin Cove, reports note, will have an 'agnostic' approach with production nodes, which will allow it to be a more adaptable processor. Indeed, earlier rumors noted that Griffin Cove will be part of an all 'P-Core' strategy, which will be first expressed through Razer Lake processors. But with the agnostic approach, Intel designers will have more ability to choose which nodes they go with for production. That is a major step up from IDM 2.0 under Pat Gelsinger, where in-house nodes were commonly adopted, with less than stellar results. Is Mobileye Next on the Block? Selling off part of Altera came as a bit of a surprise to most viewers, though only a bit. Intel needed cash, and new CEO Lip-Bu Tan was making it clear that selling off non-core businesses was the way to get there. And that has many wondering if Mobileye (MBLY) might be next up for sale. Mobileye, the self-driving car hardware operation, is perhaps one of Intel's remaining major non-core operations. While keeping a hand in the self-driving car market might be a good play long term, it likely will distract from Intel's key focus of products and foundry. Though a sale will likely not be immediate, the idea that Intel might sell off pieces of it over several months, or years, is not out of line. It would provide cash and give Intel more room to focus elsewhere. Is Intel a Buy, Hold or Sell? Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on one Buy, 27 Holds and four Sells assigned in the past three months, as indicated by the graphic below. After a 44.43% loss in its share price over the past year, the average INTC price target of $23.08 per share implies 15.86% upside potential. See more INTC analyst ratings Disclaimer & Disclosure Report an Issue
Globe and Mail
15-04-2025
- Business
- Globe and Mail
Is UnitedHealth (UNH) a Good Stock to Buy before Earnings?
Shares of healthcare company UnitedHealth (UNH) closed down in today's trading as investors await its Q1 earnings results on April 17 before the market opens. Analysts are expecting earnings per share to come in at $7.29 on revenue of $111.58 billion. This equates to 5.5% and 11.8% year-over-year increases, respectively, according to TipRanks' data. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. Ideally, earnings per share should grow faster than revenue as that would demonstrate a high degree of operating and financial leverage in the business. Nevertheless, it is worth noting that UNH has beaten earnings estimates every quarter since at least its 2021 Q2. Therefore, it is still possible that EPS growth will outpace revenue growth. It is also likely that its winning streak will continue. Indeed, Truist has increased its price target on UnitedHealth from $610 to $660 while maintaining a Buy rating, according to a new research note ahead of its Q1 earnings. The firm believes that the sector is in a strong position, thanks to its large scale, mostly domestic focus, strong free cash flow, and defensive characteristics. Although regulatory changes remain something to watch, Truist said that conditions in the sector are improving. Optum Health-Adjusted Scripts Have Been Trending Higher This optimism is further supported by the chart below from Main Street Data, which shows a steady upward trend in Optum Health-Adjusted Scripts from Q1 2020 to Q4 2024. This is a metric used by UnitedHealth Group's Optum segment (specifically OptumRx or Optum Health) to track prescription activity, but with adjustments made to better reflect the complexity, value, or type of services provided. As of Q4 2024, adjusted scripts reached 422 million – a 24% total increase over the period and a 5% compound annual growth rate. While there was a slight dip in 2020, possibly due to the pandemic's impact, volumes began recovering in 2021 and grew more noticeably through 2022–2024. Options Traders Anticipate a Large Move Using TipRanks' Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don't worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting a 4.6% move in either direction. What Is the Future of UNH Stock? Overall, analysts have a Strong Buy consensus rating on UNH stock based on 21 Buys and one Hold assigned in the past three months. Furthermore, the average UNH price target of $636.58 per share implies 9.5% upside potential. See more UNH analyst ratings Disclaimer & Disclosure Report an Issue
Globe and Mail
14-04-2025
- Business
- Globe and Mail
Nvidia Stock (NVDA) Rises as Firm Says It Will Begin Making Chips in the U.S.
After the Trump administration announced that phones, semiconductors, and computers would be excluded from new tariffs, chipmaker Nvidia (NVDA) said that it will begin manufacturing and testing its chips in the U.S. Indeed, the company stated that it has secured more than 1 million square feet of space in Arizona and Texas to produce its Blackwell chips and AI supercomputers. Unsurprisingly, this announcement led to an increase in Nvidia's stock at the time of writing. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. Nvidia is partnering with Amkor Technology (AMKR) and SPIL to handle packaging and testing operations in Arizona. CEO Jensen Huang said that building AI infrastructure in the U.S. will help meet the growing demand for the technology while also strengthening the supply chain and improving resilience. It is worth noting that this is a major development because it is the first time Nvidia's core AI products will be built in the U.S. The production of Nvidia's Blackwell GPUs has already begun at Taiwan Semiconductor's (TSM) facilities in Phoenix. The company is also working with Foxconn to develop supercomputer plants in Houston and with Wistron in Dallas. According to Nvidia, mass production at these U.S. sites is expected to scale up over the next 12 to 15 months. Is NVDA a Good Stock to Buy? Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 37 Buys, four Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVDA price target of $174 per share implies 54.2% upside potential. See more NVDA analyst ratings Disclaimer & Disclosure Report an Issue
Globe and Mail
11-04-2025
- Business
- Globe and Mail
Google-Backed Waymo (GOOGL) Is Quickly Gaining Market Share in Austin
Google-backed Waymo (GOOGL) is making a strong impression with its new robotaxi service in Austin, Texas. According to data from YipitData, the autonomous rides accounted for 20% of Uber's (UBER) total rides in the city during the last week of March. This shows that many riders were more open to the idea of trying the driverless Uber option than some analysts had expected. The data also revealed that Waymo delivered over 80% more driverless rides in the first 27 days in Austin than it did in the early rollout in San Francisco. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. Venture capital firm A16z's Alex Immerman noted that Waymo had already captured 22% of the rideshare market in parts of San Francisco by last November, which matched Lyft (LYFT) and cut into Uber's lead. He added that although Waymo currently has longer wait times due to fewer cars, customers are choosing it for the clean, quiet, and premium experience. Interestingly, Waymo now operates in five major U.S. markets: Phoenix, San Francisco, Los Angeles, Austin, and parts of Silicon Valley. In addition, analysts say that the U.S. and global robotaxi markets are large enough to support multiple leaders. It is also worth noting that in the U.S., future competition for Waymo may come from Tesla (TSLA) and Amazon's Zoox (AMZN), while Baidu (BIDU), WeRide, and Pony AI are leading the way internationally. Is Google Stock a Good Buy? Turning to Wall Street, analysts have a Moderate Buy consensus rating on GOOGL stock based on 27 Buys and 10 Holds assigned in the past three months. Furthermore, the average GOOGL price target of $205.15 per share implies 31% upside potential from current levels. See more GOOGL analyst ratings Disclaimer & Disclosure Report an Issue
