Analyst Updates on Google#
This week, Citi has placed Alphabet, Google's parent company, on a 90-day upside Catalyst Watch. Analyst Ronald Josey believes that a series of upcoming events could boost the stock's performance. These events include Google Cloud Next from April 22-24, first-quarter earnings on April 29, and several product showcases in May.
Josey notes that the online advertising market is currently strong, which supports Google’s revenue from search ads. Additionally, Google’s new AI model, Gemini, is gaining popularity, with over 750 million monthly active users. The demand for Google Cloud services also remains robust, suggesting that Alphabet is well-positioned to exceed Wall Street's expectations in the near future.
Tesla's Rating Upgrade#
In a separate update, UBS has upgraded Tesla's stock rating from Sell to Neutral. Analyst Joseph Spak cites a more balanced risk-reward scenario for the electric vehicle (EV) manufacturer, although the price target remains at $352. Tesla shares have dropped over 21% this year due to various challenges, including declining EV demand and rising costs.
Spak acknowledges that while Tesla is facing difficulties, he expects progress in its autonomous vehicle projects, such as the robo-taxi and Optimus programs. However, he warns that the stock may continue to be volatile, driven more by market sentiment than by fundamental performance.
Future Outlook for Tesla#
UBS forecasts that Tesla will deliver around 1.6 million vehicles in 2026, which is relatively flat compared to last year. This growth rate is significantly lower than the industry consensus of 3 million deliveries, primarily due to competition in China and a slow rollout of new products.
The success of Tesla's robo-taxi initiative is crucial, with plans to operate in nine cities by mid-2026. However, the slow progress in Austin raises concerns about the timeline. Additionally, the development of the Optimus humanoid robot may take longer than expected, partly due to reliance on components from China.