Alphabet Inc (NASDAQ: GOOGL) is the riskiest stock among its large-cap internet peers, says Mark Mahaney. He’s a senior analyst at Evercore ISI.

Mahaney is “cautious” on Google stock primarily because of the “cost issue”.

Note that the tech behemoth has already warned of more layoffs this year as Invezz reported here. That’s on top of well over 10,000 employees that it let go in 2023.

Still, the Evercore analyst is convinced that investors won’t “see enough out of Google” in terms of “cost discipline” in 2024.

Alphabet Inc is scheduled to report its financial results for the fourth quarter in the first week of February. Consensus is for it to earn $1.62 a share versus $1.05 per share a year ago.

Google typically sees a sequential decline in its operating margin in the fourth quarter.

Mahaney attributed that trend partially to the NFL Sunday Ticket that he said tends to be materially dilutive to search. On CNBC’s “Squawk Box”, the Evercore analyst added on Friday:

Nonetheless, Mahaney has an outperform rating on Google stock with a $160 price target that suggests about a 10% upside from here. But other mega-cap names in the internet space like Meta Platforms Inc and Amazon.com Inc are better buys than $GOOGL, Mahaney concluded.