Tuesday, BMO Capital maintained its Outperform rating and $222.00 stock price target for Alphabet Inc (NASDAQ:GOOGL). The stance follows an update from Google on its cookie policy, indicating a shift from the previously expected deprecation of cookies by 2025 to a new approach that incorporates consumer choices. The decision comes after extensive feedback from various stakeholders, including publishers, advertisers, and developers.
The update on the cookie policy was shared in a blog post by The Privacy Sandbox, a Google initiative. Alphabet's decision to modify its course and not fully remove cookies is a significant change from its earlier plan. Instead of eliminating cookies entirely, Google is now focusing on providing options to consumers, allowing them to manage their online privacy while still enabling advertisers to serve relevant ads.
This development aligns with BMO Capital's sector initiation report published on January 8, where the implications of the cookie policy on the digital advertising industry were discussed. The analyst pointed out that The Trade Desk, Inc. (NASDAQ:TTD) and Criteo SA (NASDAQ:CRTO) are likely to be the most positively impacted by this change within the firm's coverage.
The analyst's reiteration of the Outperform rating and price target suggests confidence in Alphabet's stock performance. The adjustment in Google's cookie policy could potentially influence the dynamics of the digital advertising space, as it balances user privacy with the needs of advertisers and publishers.
In summary, Alphabet's decision to modify its cookie policy, as opposed to phasing them out, has been met with a continued positive outlook from BMO Capital. The firm's analysis indicates that this shift could benefit certain players in the digital advertising market, particularly those highlighted in their recent sector report.
In other recent news, Alphabet and Tesla (NASDAQ:TSLA) are poised to release their latest earnings reports, a development highly anticipated by investors. Alphabet is expected to sustain its growth trajectory with a fourth consecutive quarter of double-digit revenue increases, while Tesla is anticipated to reveal a decline in profit margins.
Alphabet has also made headlines with its decision to maintain third-party cookies in its Chrome browser, reversing its previous commitment to phase them out.
In other corporate developments, cybersecurity startup Wiz has declined a potential $23 billion acquisition offer from Google, opting instead to pursue an initial public offering. This decision underscores Wiz's commitment to its original strategy for expansion and growth as a standalone entity in the cybersecurity market.
These recent developments reflect the ongoing shifts and trends in the corporate landscape, with a particular focus on earnings reports and strategic decisions. Investors are likely to closely monitor these developments as they continue to shape the market landscape.
InvestingPro Insights
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