Citizens Downgrades Alphabet to Market Perform on Valuation and Headwind Concerns

Citizens has downgraded Alphabet Inc. to Market Perform from Market Outperform, adopting a more neutral stance on the technology giant's near-term outlook. The adjustment, issued by research analyst Andrew Boone, reflects concerns over search competition, regulatory headwinds, and the heavy capital expenditure cycle necessary for artificial intelligence infrastructure. Analysts also pointed to potential valuation constraints and a more balanced risk-reward profile following recent gains. Despite the rating cut, Alphabet has sustained fundamental momentum across its core digital advertising, Google Cloud, and YouTube business units.