Rating: Outperform
Price Target: $975
Comment: "The bottom line is that our view on GOOG hasn’t changed much post 3Q. The financial model is strong, as the core businesses are growing better than expected, and expense controls are reasonable. There remain many new opportunities for GOOG in Cloud, hardware, AI, and emerging businesses. However, it's not all smooth sailing from here. Visibility is as low as we’ve seen it in over a decade of covering the stock. The model is more complex than it’s ever been. Comps are getting tougher, rev shares with partners are rising, and margins will decline from current levels. We think that investors will want to see execution against some of the new opportunities for the stock to work meaningfully from current levels."