NEWSLETTER
President Donald Trump's tariff strategy has governments and companies fighting to determine what follows.
This week, the president announced a 90 -day break about the implementation of tariffs for each country, except China, which now faces tariffs of more than 100% now that negotiations have apparently become personal.
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Hungry for any good news, Markets jumped on Wednesday after the pause was announced, but Thursday's session has had a difficult start as investors digest the new world economic order.
Despite the pause of the reciprocal rate, the Trump administration is still imposing 10% tariffs in all areas (less Canada and Mexico) while negotiating with countries individually.
In addition, steel and aluminum imports have a 25%duty, as well as most automatic imports.
That decision is weighing a lot in the markets on Thursday, since the main indexes sank in morning trade after a historical demonstration during Wednesday's session.
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Most people think of Alphabet as a technology company that sells a relatively small hardware amount. So, at first glance, it may not seem that 25% of tariffs in China would be a big problem for the company, which operates mainly in the digital space.
Google, bread and alphabet butter, is not even allowed to operate in China.
But Oppenheimer's analysts are still worried about how advertising will be affected by the commercial war.
Target price of alphabet reduced by oppenheimer
Oppenheimer analysts reduced Alphabet's target price to $ 185 from $ 225 per share while maintaining their higher performance rating in the shares.
The firm now expects the rates, excluding China, to be temporary. While most of the effects of this week's developments will be felt in the second quarter, long -term waves will feel for much longer.
In this new uncertainty environment, Oppenheimer analysts believe that advertisers will prioritize flexibility, performance and measurement, Thefly reported.
While this means that advertising on social networks will be successful, the company is less pessimistic about Google and Pinterest. But it also sees Snap and especially the Platforms, the parent company of facebook, instagram and WhatsApp, as exposed to the consequences of the Chinese rate.
While Alphabet does not face the greatest exhibition of tariff developments, Oppenheimer is not the only analyst company that recently questioned his place in the post-tarifa world.
Related: The White House Advisor applauds after Elon Musk took a shot
Alphabet's shares fell more than 2% on Thursday, trapped in the wider market sale.
The alphabet faces pressure on multiple fronts
Last week, Jefferies analysts reduced Alphabet's target price from $ 200 to $ 235 per share while maintaining their purchase rating.
The analyst Brent Thill said: “We can have another year of 'Salmonte' in the software”, with a cut of the first half followed by the second half.
The analyst said that the ongoing uncertainty means that “investors are waiting aside to evaluate the impact.”
More technological actions:
- Analysts review the objectives of Apple's shares such as Cook Courts Beijing
- The veteran merchant analyzes the price of Tesla's shares in the middle of the fall, the controversy
- Analysts rework the price objectives of microns shares after earnings
“We believe that ai is early, and that will have an impact later in the year, but expectations have been too high in ai for the software, and none of these companies are seeing more than 5% of its total income related to ai,” he recently told CNBC.
Meanwhile, Melius's research analyst Ben Reitzes wondered if Google was the next Kodak, the photography giant that decreased after not being able to adapt to the digital revolution and finally declared himself bankrupt in 2012.
“We have focused on 'The Simple' With Alphabet from our launch in mid -2023, and that opinion is based on the opinion that Google is losing the next generation of 'search engines' to chatgpt,” he wrote, according to Morningstar.
Related: The veteran fund manager presents a striking prognosis S&P 500
