A person who helps people find things on the internet, like Google, had a good year and made more money than expected. They think they will make even more money next year because people are searching for more stuff online. But they also have some parts of their business that aren't doing as well, so they need to fix them. The person who helps find things on the internet is called Alphabet, and someone who thinks about how much it could be worth said that it might be worth a little bit more now because they think it will make more money in the future. Read from source...
- The analyst is making a lot of assumptions and speculations without providing any concrete evidence or data to support them. He is basing his opinions on the performance of other segments and industries, which may not be relevant or applicable to Alphabet's case. He is also using vague terms like "cost optimizations", "headwinds", and "weaker Cloud revenue" without explaining what they mean or how they affect Alphabet's financials.
- The analyst is contradicting himself by saying that he would look for the segment commentary, while also making judgments about the segments' strengths and weaknesses. He is not giving Alphabet a chance to present its own perspective and explanation of its results and strategies, but instead imposing his own interpretations and expectations on them.
- The analyst is showing bias and favoritism by raising his estimates for some metrics while lowering them for others, without providing any justification or rationale for these changes. He is also changing his estimates for future years based on his increased confidence in Search growth, which may not be a reliable or accurate indicator of Alphabet's potential performance.
- The analyst is overreacting and exaggerating the significance of minor adjustments by increasing his price target by 3%, while also acknowledging that these changes are driven by his own subjective forecasts. He is implying that this small change in the price target has a major impact on Alphabet's value and outlook, which may not be true or reasonable.
To summarize, I have analyzed the article titled "Alphabet Analyst Bumps Up Price Target Ahead Of Q4 Results — But Flags Weakness In This Key Segment". Based on my analysis, I would recommend the following actions for potential investors in Alphabet: