TLDR
- Alphabet (GOOGL) traded at $328.09 in pre-market on October 22, down about 2% from the $334.76 close.
- Citizens JMP cut its price target to $450 from $515 but kept a Market Outperform (Buy) rating.
- Analyst Andrew Boone cited rising AI agent competition in Search and execution risk.
- Wall Street holds a Strong Buy consensus, with an average target near $427.
- Alphabet reports Q3 earnings on October 28, with EPS expected at $3.03.
Alphabet (GOOGL) stock was trading at $328.09 in pre-market on October 22, down about 2% from the prior close of $334.76. The move came after Citizens JMP trimmed its price target.
Analyst Andrew Boone lowered his target to $450 from $515, a cut of about 13%. His old forecast was the highest on the Street.
Even at $450, the new target implies upside of about 34% from the last close. Citizens kept its Market Outperform rating, which is equal to a Buy.
Why Citizens Pulled Back
Boone pointed to rising search competition from AI agents. He also flagged execution risk.
He described himself as “incrementally cautious” on Search. Still, he expects Alphabet to post strong results.
He thinks the stock reaction will depend more on management’s commentary than on the numbers. Investors want to hear how AI agents affect Search and whether heavy AI spending will pay off.
Boone expects cloud results to beat estimates, helped by pricing and usage. Search should land roughly in line because of tough comparisons.
He calls YouTube a “wild card.” The World Cup ad boost is fading while U.S. midterm election ad spending picks up.
Boone still likes the long-term setup. He cited Gemini 4 Argon, outside demand for Google Cloud, and distribution through Android and Chrome.
He also points to Alphabet’s lead in Search, AI and online video, plus its stake in Waymo. That is why he thinks the stock deserves a premium to the market.
Boone ranks No. 550 among more than 12,500 analysts on TipRanks. He has a 54% success rate and an average return of 12.80% per rating.
Wall Street Stays Bullish While the Stock Slips
TipRanks data shows a Strong Buy consensus on Alphabet. Over the last three months, 26 analysts rated it Buy, four said Hold and none said Sell.
The average 12-month target is about $427. That implies upside of roughly 28% to 33%, depending on the price used.
The stock has not matched that optimism this year. It rose nearly 28% from January to mid-May, then slid to 16.85% below that high.
Trading steadied from early August to early October. Then a 5.38% drop hit, followed by another 1.99% fall in pre-market on October 22.
Alphabet reports third-quarter results on October 28. Wall Street expects EPS of $3.03, up 5.6% from a year ago, and revenue of about $127.9 billion, up about 25%.
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