Alphabet: Credit Suisse maintains 'outperform' rating
(CercleFinance.com) - Credit Suisse maintains its "buy" rating on the Alphabet share on Tuesday, along with its 1,700-dollar target price, the day after the online giant reported its quarterly results.
In a note to clients, the broker said it was in particular "pleasantly surprised" to see segment revenue disclosure for search, YouTube, and Google's cloud platform (GCP).
Also, the company's management offered data points on YouTube's subscription services, with over 20 million music and over 2 million TV subscribers, Credit Suisse said.
This adds up to about a 3 billion dollar annual run rate from non-advertising revenue streams, the broker pointed out.
More broadly, Credit Suisse said that its "outperform" rating remains based on (1) ongoing monetization improvements in search advertising through AI, (2) greater-than-expected revenue contribution from non-search businesses (YouTube, cloud, and Play) and (3) potential value creation from new monetization initiatives in areas such as maps and life sciences.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
In a note to clients, the broker said it was in particular "pleasantly surprised" to see segment revenue disclosure for search, YouTube, and Google's cloud platform (GCP).
Also, the company's management offered data points on YouTube's subscription services, with over 20 million music and over 2 million TV subscribers, Credit Suisse said.
This adds up to about a 3 billion dollar annual run rate from non-advertising revenue streams, the broker pointed out.
More broadly, Credit Suisse said that its "outperform" rating remains based on (1) ongoing monetization improvements in search advertising through AI, (2) greater-than-expected revenue contribution from non-search businesses (YouTube, cloud, and Play) and (3) potential value creation from new monetization initiatives in areas such as maps and life sciences.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.