By Yasin Ebrahim
Investing.com – Alphabet (NASDAQ:GOOGL) missed on revenue and its stock is paying the price on Tuesday, but the weakness is unlikely too last for long, with several analysts giving the tech giant a thumbs up.
The company reported fourth-quarter results that missed revenue estimates, sending its share price 3% down. But the miss was driven by "lower-quality" areas like other bets, RBC said and upgraded its price target on the stock to $1,550 from $1,500.
One of the biggest surprises to come out from Google's quarterly report was the disclosure of how fast its YouTube and cloud businesses were growing.
Cloud revenue surged 53% to $32.52 billion for the quarter year on year, and YouTube rose 31%.
While the YouTube rise was smaller than expected, some are optimistic that the platform will see growth accelerate as advertising adjusts to the new content medium.
"Search advertising remains the most effective advertising medium that exists today, based on the paid-click advertising model," Oppenheimer said, raising its price target on Google to $1,620 from $1,530.
Others on Wall Street said the fall in the tech giant's shares made its valuation attractive.
Investors had “high expectations” going into the quarter, but Alphabet's valuation "looks attractive" following its post-earnings selloff, Jefferies said