Alphabet (GOOGL) Keeps Market Outperform Rating as Citizens Flags AI Talent Retention Risk

Alphabet Inc. (NASDAQ:GOOGL) is one of the 15 AI Stocks Analysts Are Watching: Microsoft, Nvidia, and More.

One of the leading AI stocks analysts are watching, analysts at Citizens have recently flagged Alphabet over renewed concerns related to the company’s ability to retain top AI talent. On June 22, Citizens analyst Andrew Boone reiterated a Market Outperform rating on the stock with a $515.00 price target.

Even though Citizens reiterated a positive rating, its commentary is solely focused on the risk associated with talent leaving for competitors. The firm noted how former Character.ai founder and current VP of Engineer at Google, Noam Shazeer, is leaving Alphabet to join OpenAI.

The firm particularly highlighted how Alphabet had paid $2.7 billion to license Character.ai’s technology, giving them access to both the technology and team. However, Shazeer’s reported switch to OpenAI reflects how even such arrangements don’t necessarily guarantee an important employee’s stay over the longer term.

Looking back, the bear case on Google from two to three years ago was that it would lose talent to OpenAI and Anthropic and would not be able to catch up in AI development. The analyst continues to monitor executive movement for that reason.

Alphabet (GOOGL) Keeps Market Outperform Rating as Citizens Flags AI Talent Retention Risk

Photo by Firmbee.com on Unsplash

For this reason, the firm will continue to monitor executive movements, with further departure an implication that retaining AI talent is becoming a meaningful challenge for the company.

Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.

While we acknowledge the risk and potential of GOOGL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GOOGL and that has 10,000% upside potential, check out our report about the cheapest AI stock.

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