Tencent Technology News, according to foreign media reports, Google's parent company Alphabet's share price fell 1% on Tuesday, because Morgan Stanley analysts warned that the stock's trend will continue to deteriorate in the short term.
This decline has reduced the market value of Alphabet by more than $8 billion. Currently, its market value is $790.9 billion.
At the same time, most other major technology stocks such as Apple, Amazon and Uber have seen different levels of rebound on Tuesday. As of Tuesday's close, Apple shares rose 1.58%, Amazon shares rose 0.96%, Uber shares rose 7.71%, and Lyft shares rose 4.92%.
Morgan Stanley analysts wrote in a report released on Tuesday: “We believe that Google’s long-term innovation in its leading ecosystem engagement/monetization has not changed. However, Google’s recent uncertainty regarding YouTube’s algorithmic adjustments may weigh the lower P/E and performance of the share capital. ”
Google reported in its latest earnings report that its advertising revenue growth slowed, with a growth rate of 15.31% in the quarter, compared with 24.43% in the same period last year. Ruth Porat, the company's chief financial officer, said the changes on YouTube were part of the reason for the slowdown in revenue growth.
Porat said: "Although YouTube's traffic growth rate is still very good in the first quarter, YouTube's click-through rate growth rate has slowed compared to the strong growth in the first quarter of last year, which reflects our The changes made in early 2018. We believe these changes have generally improved the experience for users and advertisers. ”
Although she didn't mention specific changes, YouTube has made some widely publicized adjustments to its algorithms over the past year for feedback from consumers and advertisers, which may affect ad clicks.
While Google will continue to respond to algorithmic changes on YouTube and competitive pressures from other digital advertising companies such as Facebook and Amazon, Morgan Stanley analysts say they still believe in the company's long-term growth potential.
They wrote: “Patient investors with years of vision are still likely to get good returns, but in the short term, Wall Street’s estimate of Google’s revenue (in our opinion) needs to be reduced by 1-2% to provide sufficient margin of safety. Let Google be able to exceed expectations. ”
Google also announced new ad features on Tuesday, including a new ad format called "Discovery Ad" that shows ads on tags on products like Gmail, YouTube, and Google Discover. (Tencent Technology Review / Music)