Key Takeaways:
- Alphabet's Google ends collaboration with Scale AI as Meta Platforms acquires a significant stake.
- Analysts project a significant upside for Alphabet's stock, rating it with an "Outperform" status.
- GuruFocus estimates suggest Alphabet's stock is trading below its fair value.
Alphabet's Strategic Moves: Google Cuts Ties with Scale AI
Alphabet Inc. (GOOG, Financial), through its subsidiary Google, is parting ways with Scale AI in the wake of Meta Platforms' (META) purchase of a 49% interest in the startup. Google had anticipated spending approximately $200 million on data services from Scale AI this year. However, Meta's substantial investment has sparked worries among Scale's clientele, especially concerning data confidentiality.
Wall Street Analysts' Insights
Analysts remain optimistic about Alphabet's future performance. Based on projections from 18 financial analysts, the average one-year price target for Alphabet Inc. (GOOG, Financial) is $201.56. This prediction encompasses a high estimate of $225.00 and a low of $185.00. Consequently, the average target price suggests a noteworthy potential upside of 14.60% from the current trading price of $175.88. For a more comprehensive analysis, you can visit the Alphabet Inc (GOOG) Forecast page.
Brokerage Recommendations
The consensus from 22 brokerage firms provides further endorsement for Alphabet Inc. (GOOG, Financial), assigning an average brokerage recommendation of 1.6, which equates to an "Outperform" rating. The recommendation scale operates from 1 to 5, with 1 representing a Strong Buy and 5 indicating a Sell.
GuruFocus Valuation Metrics
Leveraging proprietary metrics, GuruFocus estimates the GF Value of Alphabet Inc. (GOOG, Financial) to be $199.83 in the next year. This valuation signifies a potential upside of 13.62% from the current price point of $175.88. The GF Value reflects GuruFocus' assessment of fair market value, derived from the company's historical trading multiples, past growth performance, and projected future business performance. More extensive data can be accessed through the Alphabet Inc (GOOG) Summary page.
