Alphabet should be giving away Google Home, says Morgan Stanley - InvestingChannel

Alphabet should be giving away Google Home, says Morgan Stanley

Mrgan Staney anayst Brian Nwak wered his FY18 EPS estimate fr Aphabet (GOOGL) by 1%, citing the impact f freign exchange and cmpany investments n Cud, Hardware, and YuTube, and nted that he expects Q2 EPS t miss cnsensus by 1%. Hwever, he wud be a buyer n any weakness thrugh Q2 resuts and raised his price target n Aphabet shares t $1,250 frm $1,200 given a higher view n its ng-term earnings. Nwak estimates U.S. husehd penetratin f smart speakers wi grw t abut 70% by 2022, with Amazn (AMZN) having 1.3 times mre Echs in use than Gge Hme devices. Given this view, and his expectatin fr vice shpping t ead t faster e-cmmerce adptin, Nwak argues that Aphabet shud give away a Gge Hme Mini t every U.S. husehd, and pssiby even everyne gbay. The cst wud be “ny” $3.3B, and the arger persna assistant base wud et Gge grw its emerging vice techngies, accrding t Nwak, wh keeps an Overweight rating n Aphabet.