Google's Stock Gains After Analyst Boosts Price Target

By MarketWatch Pulse

Alphabet Inc.'s stock gained 1.1% in premarket trade Monday, after the Internet giant's stock price target was raised to $850 from $820 at Pacific Crest Securities. Analyst Evan Wilson said his new target now reflects the value of Alphabet's non-Google "other bets," ahead of the company breakout them when it reports fourth-quarter results next month. Wilson said he estimates the "other bets" are losing at the low end of expectations of about $2 billion to $5 billion. He said some analysts believe the more Alphabet is losing on the "other bets," the more the core Google operations are making. The "other bets" include self-driving cars, Google Capital, access and energy and Replicant. "After our analysis, we're not sure that the new disclosure makes core Google look more profitable than expected," Wilson wrote in a note to clients. "We do think the disclosure is positive, because it is part of Alphabet's journey to be more shareholder friendly, which we think will continue to be a catalyst for [Alphabet]." The stock has soared 43% year to date, while the S&P 500 has lost 2.6%.

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