Wall Street Downgrades Alphabet's AI and Stock Performance

Alphabet Inc. received a downgrade from Bernstein, citing risks related to artificial intelligence (AI), an emerging technology that Alphabet is seen as a major player in. The downgrade brings Alphabet’s consensus rating to its lowest since April 2018. The firm noted that Alphabet has gone “from too slow to too fast in AI” and the “aggressive push to integrate GenAI into core search results could create a near-term air pocket on search ad pricing.” Despite the downgrade, about 85% of analysts continue to recommend buying the stock.