BMO Reaffirms Alphabet as Top Internet Pick
BMO Capital Markets reiterated its bullish stance on Alphabet Inc (NASDAQ: GOOGL), keeping the company as its top pick in the internet sector and maintaining an Outperform rating. The reaffirmation follows a 10% decline in Alphabet’s share price, which occurred after the departures of two high‑profile AI researchers—Noam Shazeer, who moved to OpenAI, and John Jumper, who joined Anthropic. Over the same period, the broader S&P 500 index fell 3%.
Analyst Brian Pitz argued that the market has overestimated the impact of these individual exits on Alphabet’s overall AI capabilities, emphasizing that the company retains a deep bench of AI talent and resources. He characterized the recent sell‑off as an overreaction and suggested that the price weakness creates an attractive entry point for investors.
In parallel, Wells Fargo adjusted its outlook for Alphabet by lowering its price target while retaining an Overweight rating. The bank forecasted a 17% year‑over‑year growth in search revenue for the second quarter.
Separately, Google is confronting an antitrust investigation by South Korean authorities concerning its app‑store practices, adding a regulatory dimension to the company’s risk profile.
This article was generated with AI assistance and reviewed by an editor.