Alphabet stock (NASDAQ:GOOG) went up a little in early trading on Friday after Tigress Financial reaffirmed its strong buy rating for Alphabet (NASDAQ:GOOG) and Alphabet (NASDAQ:GOOGL), citing the tech giant’s strengths in cloud computing and search.
Alphabet Stock Outlook
The highlights of Alphabet’s core business are cloud and search, according to analyst Ivan Feinseth, who also has a $160 price target on the stock. But he said that investments in artificial intelligence and a stronger focus on reducing costs and making operations more efficient could help in other ways. Feinseth says that the current downturn in the company should be seen as a “big buying opportunity” for investors.
Feinseth says that the current downturn in the company should be seen as a “big buying opportunity” for investors. In a note to customers, Feinseth stated that “Search-driven ad spending and Cloud revenues will continue to fuel rapid Business Performance trends.” He also made the point that any breakthrough in the cloud would spur more economic expansion.
The analyst pointed out more benefits of Alphabet and Google, like the fact that the company has a deal with the NFL to send Sunday tickets to YouTube TV and YouTube. Feinseth said that the deal, which will start in 2023, will take advantage of YouTube’s strong platform and help it get “highly valued content.”
Feinseth also pointed out the company’s good cash flow and balance sheet, which can help with acquisitions and increase shareholder returns, including through buybacks. Citi stated last month that Google’s acquisition of the NFL Sunday Ticket subscription rights might “accelerate” the growth of YouTube TV’s subscriber base.
YouTube
According to Citi, the acquisition of the NFL Sunday Ticket subscription by Google’s YouTube might “accelerate” the growth of YouTube TV subscribers.
YouTube TV has approximately 5 million members, including trial users, according to analyst Ronald Josey, who has a buy rating and a $120 price target on Google. However, the addition of the NFL package might increase that number.
The Sunday Ticket “deepens YouTube’s overall content strategy in a crucial live sports vertical, but we regard it as more of a niche product compared to exclusive [Sunday Night Football, Monday Night Football, and Thursday Night Football] or Sunday broadcast games,” Josey wrote in a note to customers.
According to Josey, the 10.3 million NFL subscribers on the video streaming platform, in addition to all 32 NFL teams and the league’s 10 official channels, should be able to cross-sell to those users.
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Author Jowi Kwasu 
