Google And Amazon Stock Price Targets Lowered After Recession Risk

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Google And Amazon Stock Price Targets Lowered After Recession Risk

Google And Amazon Stock Price Targets Lowered After Recession Risk

As the risk of a possible recession in the USA is rising, the experts have also lowered the stock price targets for Google and Amazon. According to experts, tech stocks such as Amazon and Google are not immune to the slowing US economy. In fact, the rising price of the US dollar, inflation, and a possible recession will hurt these stocks!

Big stocks such as GOOGL (Alphabet) and Amazon (AMZN) are in a good position to handle macroeconomic problems. At least, that's the case for the short term, but if the macroeconomic turbulence extends, it will get difficult.

The experts believe that the new stock price for the target is now $170 (the earlier target was $180). As for the Alphabet, the target was lowered from $145 to only $136!

Lowered Revenue Targets For Alphabet And Amazon

For Amazon (AMZN), the target revenue has been lowered from $126.7 billion to around $125 billion, which is a drop of almost $1.7 billion. As for Alphabet, the new revenue target is $71.2 billion (it also dropped by around $1.1 billion).

In short, both companies will likely witness a drop of around $1 billion in their revenue which will ultimately hurt their net profit as well!

In 2023, the chances of a mid-recession in the USA and various other countries will be very high! As such, more volatility will be witnessed in the currencies and even the stocks!

If we look at the culprits for these lower forecasts, they can be attributed to the rising dollar, inflation, and reduced consumer spending.

A higher dollar price means that the company will earn less money from overseas markets after the currency conversion!

The US Dollar Index (DXY) is already up by almost 17% against other currencies. This is an indication that the USD is rising at a higher rate. Whenever the USD gains ground, it means that the stock markets will struggle. And we are already seeing that in all the major US indices, such as the DOW, S&P, and even the NASDAQ!

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