Alphabet stock initiated at Wedbush with outperform rating

Wedbush analyst Michael Pachter initiated coverage of Alphabet Inc.’s stock GOOGL, -0.48%GOOG, -0.50% on Wednesday afternoon, setting a $1,350 price target on the shares. He is upbeat about Google’s ability to "maintain positive ad momentum" even though he expects that Facebook Inc. FB, +0.40% and Amazon.com Inc. AMZN, +0.65% will "continue to pressure the rate of Google’s growth" thanks to their dominance in friend searches and retail searches, respectively. Heading into Alphabet’s third-quarter report on Oct. 25, Pachter expects the company to beat consensus earnings expectations due to cost-control efforts. He models $11 in earnings per share for the quarter. Alphabet shares are off 0.3% in after-hours trading Wednesday. The stock has gained 12% over the past 12 months, while the S&P 500 SPX, -0.03% has climbed 10%.

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