Alphabet’s Price Target Cut on Revised Earnings Forecasts

Morgan Stanley has revised its price target for Alphabet Inc. to $185 from $210 while maintaining an Overweight rating on the shares. The firm’s decision was accompanied by a ratcheting down of revenue estimates by approximately 2% for FY25 and FY26, influencing a 4% cut in EPS forecasts. In detail, the analyst projects around $10 of EPS in FY26. These revisions were implemented in the wake of estimate reductions “across the board” for the firm’s coverage of North American internet stocks.

Alphabet's stock price (NMS: GOOGL) lost 1.91% from the previous trading day, yet has gained 1.02% through this morning's pre-market.

With a market capitalization of $1.88 trillion and a 52-week high of $207.05 set against a 52-week low of $140.53, Alphabet maintains a strong position in the market. Alphabet's share price movement places it within a broad trading range, showcasing the sizeable market shifts that major tech companies are subject to in the current economic environment.

Corporate and Financial Highlights

Based in Mountain View, California, Alphabet Inc. operates within the Communication Services sector, specifically in the Internet Content & Information industry. Alphabet delivers a variety of products and platforms across multiple global regions, extending from Google Services and Google Cloud to the spectrum of “Other Bets” including ventures in healthcare and internet services.

For the trailing twelve months, Alphabet reported a P/E ratio of 19.09 and a more forward-looking P/E ratio of 17.11. The company offers a dividend rate of $0.80, yielding 0.52%, and boasts a cautious payout ratio of 7.46%. Financially, Alphabet stands strong with a total revenue footprint of over $350 billion and net income to common reaching $100 billion.

Alphabet's investor base is robust, with institutional holdings constituting 81.44% of the stock, a sign of substantial market confidence and vested interest from large-scale investors. The company with its outstanding shares of roughly 5.83 billion, and a float of over 10.91 billion shares, continues to be a cornerstone in technology investment portfolios, influenced by analysts' consensus of ‘buy', averaging a recommendation mean of 1.58 based on 49 analyst opinions.

While the adjusted price target by Morgan Stanley reflects caution amidst a transforming market landscape, Alphabet Inc. remains a noteworthy entity with strong potential for continued success.