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Google Delays Plan for Workers to Return to Office in January

Google will wait until next year to determine when offices can safely return to a 'stable, long-term working environment.'
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Alphabet’s  (GOOGL) - Get Free Report Google is indefinitely delaying plans for workers to return to the office, given the spread of the omicron Covid variant and some worker opposition to company-mandated vaccinations.

In August, the Mountain View, Calif., search, advertising and tech giant said it expected staffers to come on-site about three days a week starting Jan. 10 at the earliest, which would have ended its voluntary work-from-home policy.

But the company wrote Thursday in an e-mail to full-time workers, obtained by CNBC, that it would wait until next year to determine when offices can safely return to a “stable, long-term working environment.”

Alphabet recently traded near $2,814, down 1.6%. It has soared 61% year to date on strong financial performance, though it has slid 6% since Nov. 18.

Morningstar analyst Ali Mogharabi assigns the company a wide moat.

“Alphabet third-quarter results beat the FactSet consensus estimates on the top and bottom line, benefiting from strong advertising demand in various verticals, less impact of Apple’s  (AAPL) - Get Free Report changes to its iOS, and continuing strong growth in cloud,” he wrote in October.

“With further YouTube and other Google app monetization opportunities and the firm’s increasing traction in the cloud market, we have slightly increased our projections, resulting in a 6% increase in our Alphabet fair value estimate to $3,400.…

We expect continuing growth in the firm’s cash flow, as we remain confident that Google will maintain its leadership in the search market.

“We foresee YouTube contributing more to the firm’s top and bottom lines, and we view investments of some of that cash in moonshots as attractive.”