Shares of Google parent Alphabet Inc. GOOGL, +1.47% sank 8.4% in premarket trade, after the internet giant reported a double miss, for both earnings and total revenue, for the first time since the first quarter of 2016. The stock is on track to suffer the biggest one-day post-earnings selloff since the company said in August 2015 it was changing its name to Alphabet from Google. Of the 43 analysts surveyed by FactSet, no less than 13 have cut their price targets, and one cut their rating, while two analysts raised their price targets. Stifel Nicolaus’s Scott Devitt lowered his rating to hold, after being at buy for the past year. “We view shares as fairly valued at current levels and believe the multiple is likely to remain range bound over the next twelve months as a potential deceleration digestion period lies ahead with lower visibility into near-term revenue growth rates,” Devitt wrote in a note to clients. Oppenheimer’s Jason Helfstein cut his price target to $1,342 from $1,435 but kept his rating at outperform, citing “attractive” valuation. Susquehanna’s Shyam Patil raised his price target to $1,500 from $1,340 but kept his positive rating. While he acknowledges that there aren’t necessarily any clear catalysts for the stock in the near term, “valuation has gotten to the point where downside is likely limited,” adding he likes the stock on the dip. The stock, which closed Monday at a record high, has surged 24% year to date while the S&P 500 SPX, +0.11% has gained 17%.
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