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Alphabet stock cut to hold at Stifel; analyst points out Amazon risk

“Following Alphabet Inc.’s GOOGL, -0.05% fourth-quarter earnings release, analysts at Stifel have cut their rating on shares to hold from buy” writes Emily Bary for Egbert cites a third-party study saying that more than half of all consumer-product searches begin at Amazon: “This has the potential to cannibalize Google’s revenue from retail advertisers.”. “Rising TAC presents a greater risk to multiple compression rather than margin erosion in the near term, though greater-than-expected TAC could continue to create a headwind to margin expansion,” Egbert wrote.He added that Google’s traffic-acquisition costs have been rising as a percentage of total gross revenue.Alphabet shares are down 4.1% in premarket trading but up 44% over the past 12 months.

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