Kessler also observed that the cloud business is also a major bright spot for Alphabet, noting that the business is gaining momentum. YouTube Shorts receives more than 30 billion daily views. Even at YouTube, the strong growth in YouTube Shorts user engagement is positive, Kessler said. In a recent report, he pointed out that retail and travel recovery will continue to drive gains in Google’s search business. The analyst sees long-term growth potential for Google search, even though the war in Ukraine may be reducing ad spending in Europe. Kessler rated the stock a buy with a price target of $3,180. However, the company believes that there is still a great opportunity in the direct response category. First, Alphabet’s management explained that the issue with YouTube was the direct response ad type, which faced a tough comparison with the same quarter the previous year. (See Alphabet Blogger Sentiment on TipRanks)Īlthough a slowdown at YouTube may be an issue for investors to worry about, Raymond James analyst Aaron Kessler believes there is much to like in GOOGL stock. The Google parent primarily generates its revenue from advertising, and YouTube is one of its most important assets in this business. AlphabetĪlphabet’s ( GOOG) stock fell after the company reported quarterly results that showed lower-than-expected YouTube ad revenue growth. The analyst’s stock ratings have been accurate 61% of the time, with an average return of 21.6% per rating. Out of almost 8,000 analysts in the TipRanks database, Ives is ranked at No. Further, the analyst noted that Microsoft’s other businesses are also doing well. As a result, cloud spending is only going to accelerate, and Microsoft is well positioned to take advantage of it. According to Ives, companies will continue investing in their digital transformation despite the Federal Reserve's rate hikes and inflation issues likely slowing down the economy. The cloud services that Microsoft and others provide help companies modernize their systems so they can operate more efficiently. Ives rated the stock a buy with a price target of $340. In a recent report, the analyst pointed out that the company is expecting to report cloud revenue of as much as $21.35 billion in the current quarter, compared to Wall Street’s consensus estimate of $20.89 billion. Wedbush’s Dan Ives agrees that Microsoft’s cloud business will continue to shine. (See Microsoft News Sentiment on TipRanks)
STRAIGHT TO GAY VIDEOS TWITTER SOFTWARE
The Windows software maker went on to provide an upbeat outlook for the current quarter and fiscal year as it expects its cloud business to continue to perform well.
Microsoft ( MSFT) reported s trong quarterly results, powered by solid performance in the cloud computing business.