Shares of Google parent Alphabet Inc. fell 0.8% in premarket trade Wednesday, after the stock was downgraded to underperform at Wedbush. “Paid search monetizes better than other digital media because its traffic is a good proxy for “self-identified consumers,” analysts wrote in a note. “GOOGL’s recent mobile search ad changes push the traffic mix to paid from organic, which has decelerated sharply.” That creates “potential disequilibrium” in monetizing these consumers, as advertisers weigh the cost of search ads against return on investment, they wrote. Wedbush lowered its price target on the stock to $700. Alphabet shares have risen 29% in the last year, versus the S&P 500’s 14%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News