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Wedbush Downgrades Alphabet
On Friday, James Dix of Wedbush Securities (pictured above) appeared on Bloomberg West, explaining why he had downgraded Alphabet ([[GOOG]], [[GOOGL]]). Dix based his decision on three trends he saw potentially impacting the future of Alphabet's search and display ad businesses:
- Rapid shift to paid search, particularly in mobile. Dix says this has the potential of reducing the moat of the Google search engine. Dix didn't mention it, but I wonder if Apple's (AAPL) new search ads on its app store (launching this week) count are an example of this.
- The rise of ad-blocking. This obviously affects the display ad business. Another example unmentioned by Dix comes to mind here, the new Brave browser launched by Brendan Eich, the Mozilla co-founder forced out a couple of years ago.
- The rapid acceleration in payments platforms. Dix sees this as a step in the development
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