Is Alphabet Stock a Good Investment?
Alphabet Investment Advice | GOOG |
- Examine Alphabet's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Alphabet's leadership team and their track record. Good management can help Alphabet navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Interactive Media & Services space and any emerging trends that could impact Alphabet's business and its evolving consumer preferences.
- Compare Alphabet's performance and market position to its competitors. Analyze how Alphabet is positioned in terms of product offerings, innovation, and market share.
- Check if Alphabet pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Alphabet's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Alphabet Inc Class C stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Alphabet Inc Class C is a good investment.
Sell | Buy |
Hold
Market Performance | Insignificant | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Alphabet Stock
Researching Alphabet's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 61.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.07. Alphabet Class C recorded earning per share (EPS) of 7.54. The entity last dividend was issued on the 9th of December 2024. The firm had 20:1 split on the 18th of July 2022.
To determine if Alphabet is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Alphabet's research are outlined below:
| About 61.0% of the company shares are owned by institutional investors | |
| Latest headline from theverge.com: Zoom 2.0 relaunches as an AI-first company without video in its name |
Alphabet Quarterly Gross Profit |
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Earnings surprises can significantly impact Alphabet's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Alphabet's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2017-07-24 | 2017-06-30 | 0.2235 | 0.2505 | 0.027 | 12 | ||
2019-04-29 | 2019-03-31 | 0.5315 | 0.475 | -0.0565 | 10 | ||
2017-10-26 | 2017-09-30 | 0.4165 | 0.4785 | 0.062 | 14 | ||
2020-07-30 | 2020-06-30 | 0.42 | 0.51 | 0.09 | 21 | ||
2019-02-04 | 2018-12-31 | 0.541 | 0.6385 | 0.0975 | 18 | ||
2023-04-25 | 2023-03-31 | 1.06 | 1.17 | 0.11 | 10 | ||
2019-10-28 | 2019-09-30 | 0.623 | 0.506 | -0.117 | 18 | ||
2018-10-25 | 2018-09-30 | 0.52 | 0.653 | 0.133 | 25 |
Know Alphabet's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Alphabet is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Alphabet Inc Class C backward and forwards among themselves. Alphabet's institutional investor refers to the entity that pools money to purchase Alphabet's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Alliancebernstein L.p. | 2024-06-30 | 45.9 M | Legal & General Group Plc | 2024-06-30 | 42 M | Capital World Investors | 2024-09-30 | 39.9 M | Capital Research Global Investors | 2024-09-30 | 38.9 M | Bank Of America Corp | 2024-06-30 | 34.8 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 33.3 M | Nuveen Asset Management, Llc | 2024-06-30 | 31.9 M | Charles Schwab Investment Management Inc | 2024-09-30 | 29.9 M | Hhg Plc | 2024-06-30 | 29.5 M | Vanguard Group Inc | 2024-09-30 | 407.8 M | Blackrock Inc | 2024-06-30 | 355.3 M |
Alphabet's market capitalization trends
The company currently falls under 'Mega-Cap' category with a current market capitalization of 2.08 T.Market Cap |
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Alphabet's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.20 | 0.11 | |
| Return On Capital Employed | 0.26 | 0.24 | |
| Return On Assets | 0.18 | 0.10 | |
| Return On Equity | 0.26 | 0.27 |
Determining Alphabet's profitability involves analyzing its financial statements and using various financial metrics to determine if Alphabet is a good buy. For example, gross profit margin measures Alphabet's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Alphabet's profitability and make more informed investment decisions.
Alphabet's Earnings Breakdown by Geography
Evaluate Alphabet's management efficiency
Alphabet Class C has return on total asset (ROA) of 0.1648 % which means that it generated a profit of $0.1648 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.321 %, meaning that it created $0.321 on every $100 dollars invested by stockholders. Alphabet's management efficiency ratios could be used to measure how well Alphabet manages its routine affairs as well as how well it operates its assets and liabilities. The Alphabet's current Return On Equity is estimated to increase to 0.27, while Return On Tangible Assets are projected to decrease to 0.11. At this time, Alphabet's Non Current Assets Total are most likely to increase significantly in the upcoming years. The Alphabet's current Non Currrent Assets Other is estimated to increase to about 10.6 B, while Net Tangible Assets are projected to decrease to roughly 174.2 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 22.44 | 23.56 | |
| Tangible Book Value Per Share | 20.13 | 21.13 | |
| Enterprise Value Over EBITDA | 18.05 | 22.20 | |
| Price Book Value Ratio | 6.23 | 5.91 | |
| Enterprise Value Multiple | 18.05 | 22.20 | |
| Price Fair Value | 6.23 | 5.91 | |
| Enterprise Value | 651 B | 683.5 B |
The management team at Alphabet has a track record of steering the company towards sustained growth. Evaluating their strategies helps in understanding the stock's long-term potential.
Dividend Yield 0.0047 | Forward Dividend Yield 0.0047 | Forward Dividend Rate 0.8 | Beta 1.034 |
Basic technical analysis of Alphabet Stock
As of the 28th of November, Alphabet shows the Mean Deviation of 1.21, downside deviation of 1.92, and Risk Adjusted Performance of 0.0238. Alphabet Class C technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm Alphabet Class C treynor ratio, as well as the relationship between the downside variance and kurtosis to decide if Alphabet Class C is priced correctly, providing market reflects its regular price of 170.82 per share. Given that Alphabet has jensen alpha of (0.06), we suggest you to validate Alphabet Inc Class C's prevailing market performance to make sure the company can sustain itself at a future point.Alphabet's Outstanding Corporate Bonds
Alphabet issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Alphabet Class C uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Alphabet bonds can be classified according to their maturity, which is the date when Alphabet Inc Class C has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| ALPHABET INC Corp BondUS02079KAD90 | View | |
| ALPHABET INC 1998 Corp BondUS02079KAC18 | View | |
| ALPHABET INC Corp BondUS02079KAF49 | View | |
| ALPHABET INC Corp BondUS02079KAE73 | View | |
| ALPHABET INC Corp BondUS02079KAH05 | View | |
| ALPHABET INC Corp BondUS02079KAG22 | View | |
| ALPHABET INC Corp BondUS02079KAJ60 | View |
Understand Alphabet's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Alphabet's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0238 | |||
| Market Risk Adjusted Performance | 0.0481 | |||
| Mean Deviation | 1.21 | |||
| Semi Deviation | 1.84 | |||
| Downside Deviation | 1.92 | |||
| Coefficient Of Variation | 4105.78 | |||
| Standard Deviation | 1.57 | |||
| Variance | 2.48 | |||
| Information Ratio | (0.06) | |||
| Jensen Alpha | (0.06) | |||
| Total Risk Alpha | (0.22) | |||
| Sortino Ratio | (0.05) | |||
| Treynor Ratio | 0.0381 | |||
| Maximum Drawdown | 8.6 | |||
| Value At Risk | (2.47) | |||
| Potential Upside | 2.21 | |||
| Downside Variance | 3.69 | |||
| Semi Variance | 3.38 | |||
| Expected Short fall | (1.06) | |||
| Skewness | (0.61) | |||
| Kurtosis | 1.09 |
| Risk Adjusted Performance | 0.0238 | |||
| Market Risk Adjusted Performance | 0.0481 | |||
| Mean Deviation | 1.21 | |||
| Semi Deviation | 1.84 | |||
| Downside Deviation | 1.92 | |||
| Coefficient Of Variation | 4105.78 | |||
| Standard Deviation | 1.57 | |||
| Variance | 2.48 | |||
| Information Ratio | (0.06) | |||
| Jensen Alpha | (0.06) | |||
| Total Risk Alpha | (0.22) | |||
| Sortino Ratio | (0.05) | |||
| Treynor Ratio | 0.0381 | |||
| Maximum Drawdown | 8.6 | |||
| Value At Risk | (2.47) | |||
| Potential Upside | 2.21 | |||
| Downside Variance | 3.69 | |||
| Semi Variance | 3.38 | |||
| Expected Short fall | (1.06) | |||
| Skewness | (0.61) | |||
| Kurtosis | 1.09 |
Consider Alphabet's intraday indicators
Alphabet intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Alphabet stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Alphabet Corporate Filings
F4 | 26th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 8th of November 2024 Other Reports | ViewVerify | |
10Q | 30th of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 29th of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Alphabet Stock media impact
Far too much social signal, news, headlines, and media speculation about Alphabet that are available to investors today. That information is available publicly through Alphabet media outlets and privately through word of mouth or via Alphabet internal channels. However, regardless of the origin, that massive amount of Alphabet data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Alphabet news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Alphabet relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Alphabet's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Alphabet alpha.
Alphabet Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Alphabet can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
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Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Alphabet Class C Historical Investor Sentiment
Investor biases related to Alphabet's public news can be used to forecast risks associated with an investment in Alphabet. The trend in average sentiment can be used to explain how an investor holding Alphabet can time the market purely based on public headlines and social activities around Alphabet Inc Class C. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Alphabet's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Alphabet and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Alphabet news discussions. The higher the estimate score, the more favorable the investor's outlook on Alphabet.
Alphabet Corporate Management
| Ivy Ross | VP Products | Profile | |
| Prabhakar Raghavan | Senior Google | Profile | |
| Kent Walker | Chief Affairs | Profile | |
| Philipp Schindler | Senior Google | Profile |
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Alphabet Inc Class C. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Is Interactive Media & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Alphabet. If investors know Alphabet will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Alphabet listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.366 | Dividend Share 0.4 | Earnings Share 7.54 | Revenue Per Share 27.443 | Quarterly Revenue Growth 0.151 |
The market value of Alphabet Class C is measured differently than its book value, which is the value of Alphabet that is recorded on the company's balance sheet. Investors also form their own opinion of Alphabet's value that differs from its market value or its book value, called intrinsic value, which is Alphabet's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Alphabet's market value can be influenced by many factors that don't directly affect Alphabet's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Alphabet's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Alphabet is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alphabet's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.