@zacksresearch: Google’s Rating Cut Over YouTube Ad Placements

Alphabet Inc. GOOGL , the parent company of Google, received a downgrade today to “Hold” from “Buy” by Pivotal Research analyst Brian Wieser. The reason for the rating cut centered on the placement of YouTube’s ads. Some ad buyers had voiced that their ads appeared next to videos carrying homophobic or terroristic videos on YouTube.

This has become a large problem for Google in the UK, as many of the largest brands have suspended their advertising on YouTube. Agency holding company Havas HAVSF announced that it has suspended all advertising on YouTube and Google Display Network for its clients in the U.K. Havas’ clients includes the UK Government, L’Oreal LRLCY , McDonald’s MCD , and Sainsbury, JSAIY .

“We think that the problems which have come to light will have global repercussions as marketers potentially adapt their U.K. policies to other markets and as marketers around the world become more aware of the problem,” said Wieser in a report….

Alphabet closed the day with a decrease of $4.46 (0.51%) to $867.91 per share.

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