NEW YORK – Bank of America has issued a warning on Alphabet (GOOGL) stock ahead of the company’s earnings release, despite the parent company of Google experiencing a strong run-up in its shares.
Alphabet’s stock has risen 9.9% year to date, outpacing the S&P 500 Index’s 1.9% gain. The company’s Waymo autonomous driving unit also secured a significant $16 billion in funding, boosting its valuation to $126 billion.
However, Bank of America is warning that investors should be cautious ahead of Alphabet’s Q4 earnings release, with analysts expecting the company to exceed forecasts due to growth in AI and cloud services. The bank’s note on Alphabet stock comes ahead of the company’s earnings announcement, which is expected to provide insight into the company’s performance in the final quarter of 2022.
