Goldman Cuts Alphabet Price Target to $130, Forecasts 4% Ad Growth Slowdown
GOOG•Goldman Sachs cut Alphabet’s rating to Neutral and lowered its price target to $130 after forecasting first-quarter ad revenue growth of just 4%, the slowest since 2020. The firm also predicts Google Cloud revenue will decelerate to 20% year-on-year, raising concerns over a potential earnings miss.
1. Rating Change and Price Target Adjustment
Goldman Sachs downgraded Alphabet from Buy to Neutral and trimmed its twelve-month price target from $145 to $130, reflecting increased caution over near-term revenue momentum.
2. Forecasted Ad Revenue Slowdown
The firm now expects Alphabet’s first-quarter ad revenue to rise only 4% year-over-year, the weakest annual gain since 2020, citing reduced marketing spend and intensifying competition.
3. Cloud Segment Deceleration
Goldman projects Google Cloud growth to slow to 20% in the upcoming quarter, down from 23% in Q4, a pace that may fall short of consensus and pressure margins.
