Alphabet Inc. was worth more than Amazon.com Inc. for the first time in 16 months on Friday, as the strong rally in the online advertising giant’s shares in 2021 continues.
The parent company of Google Alphabet GOOG,
finished Friday’s session with a market value of $ 1.622 billion, while Amazon AMZN,
closed the day with a valuation of $ 1.616 trillion, according to Dow Jones Market Data. Alphabet shares rose 2% on Friday, bringing their cumulative gains to 36.6%, while Amazon shares rose 0.6% but are still down from the year.
Competition is mounting between the two tech giants, as Alphabet’s Google has stepped up its e-commerce efforts. The company recently partnered with Shopify Inc. SHOP,
Square Inc. SQ,
and others that will make it easier for small merchants using these services to create product listings on Google’s various platforms such as Maps and Shopping.
While it’s free for businesses to build lists, analysts expect Google to try to beef up its e-commerce platform to create a more engaging environment for advertisers. Amazon also has an online advertising business.
Alphabet is also facing a broader shift in the advertising landscape, given the increased focus on user privacy, which has prompted a move away from third-party cookies. Following a Google marketing event last week, Evercore ISI analyst Mark Mahaney was “increasingly grateful for Google’s commitments to create privacy-friendly alternatives to third-party cookies that don’t not compromise the effectiveness of targeting or measurement ”. He also applauded the company’s purchasing improvements.
Overall, Brian White, analyst at Monness, Crespi, Hardt & Co., said Alphabet was “well positioned for a continued recovery in digital ad spend in 2021″, although he expects it to be. ” ongoing antitrust monitoring of the company.
Read: In Google’s antitrust effort, authorities may have saved the best for last
Analysts predict a bigger rise ahead for Amazon stocks, which performed better earlier in the pandemic before stagnating more recently. The average price target among analysts tracked by FactSet who hedge Amazon stocks is $ 4,272.49, 33% above recent levels. The average price target for Alphabet shares is $ 2,791.48, which is approximately a 17% increase.