CNBC’s Investing Club, led by Jim Cramer, lowered its Alphabet rating from 1 to 2 and cut its price target from $400 to $350. The group nevertheless retains its position because of the momentum in Alphabet’s cloud business, but considers the stock’s decline insufficient to warrant buying the dip immediately. Cramer would buy again if the price-to-earnings multiple fell from its current level of about 19 times to a range of 17 to 18 times. The group also wants to see improved monetization of AI mode to better support the transition from traditional search. Disappointing results from Alphabet, ServiceNow and Fortinet weighed on technology stocks, while defensive and interest-rate-sensitive sectors held up better.
Source: Read the original article
