Alphabet stock: buy or sell?

GOOG stock price: $1,138.85 -2.02% At close on May 20th, 2019

Updated on:
May 20th, 2019

3

Shares of the Mountain View based company fell a fatal -2.02% and closed at $1,138.85.

Alphabet Inc., through its subsidiaries, provides online advertising services in the United States and internationally. The company offers performance and brand advertising services.

Should I buy Alphabet stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Having a trading strategy helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

These 2 buy setups are elegible for Alphabet stock right now:

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MAYes
100d MA crossing up 200d MAYes

Is Alphabet stock a buy?

Banks and financial institutions publish stock ratings everyday. At Stocks2.com, we gathered 15 ratings published for GOOG stock in the last 30 days.

The general sentiment of these ratings is bullish for GOOG stock, with 14 positive ratings.
Is GOOG a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-5-15UBS Groupn/aBuy
2019-5-15Deutsche Bankn/aBuy
2019-5-15Credit Suisse Groupn/aSell
2019-4-30UBS Groupn/aBuy
2019-4-30Royal Bank of Canadan/aBuy
2019-4-30JPMorgan Chase & Co.n/aBuy
2019-4-30Deutsche Bankn/aBuy
2019-4-30Credit Suisse Groupn/aBuy
2019-4-30Barclaysn/aBuy
2019-4-29Goldman Sachs Groupn/aBuy
2019-4-23Goldman Sachs Groupn/aBuy
2019-2-6Goldman Sachs Groupn/aBuy
2019-2-5UBS Groupn/aBuy
2019-2-5Piper Jaffray CompaniesPositiveOverweight
2019-2-5JPMorgan Chase & Co.n/aBuy

Alphabet stock analysis

Daily outlook

The Mountain View based company fell a fatal -2.02% and closed at $1,138.85.

On Apr/29, GOOG hit new all time highs, pushing higher previous ATH of $1,273.89 recorded on July. New ATHs are usual entry points for many trading setups as there aren't higher resistences. The Google parent shares fell -2.02% to $1,138.85 today. Since price and SMA200d lines crossed up on Wednesday, GOOG climbed $18.41 (1.64%). Since SMA100d and SMA200d crossed up on May/13, GOOG price slid a -2.18%.

GOOG stock chart (daily)

Weekly outlook

The Mountain View based company closed this week at $1,138.85 and slightly fell a fateful -2.02%. Counting this, it's been 4 sliding weeks in a row, loosing $-133.33 (-10.78%). Late April GOOG plummed a bloodcurdling -7.32% in just one week.

Not so far away is the last price record the Mountain View based company marked late April. Price pattern shows an uptrend with two rising tops and bottoms, and now trading upwards to the $1,289.27 resistance. Since SMA20w and SMA40w crossed up late April, GOOG price slid a -10.48%. Since price and SMA40w lines crossed up late February, GOOG climbed $28.48 (2.56%).

GOOG stock chart (weekly)

Alphabet stock price history

Alphabet stock went public on August 19th, 2004 with a price of $49.681. Since then, GOOG stock surged a 2,192.40%, with a yearly average of 156.60%. If you had invested $1,000 in Alphabet stock in 2004, it would worth $21,924.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Alphabet stock historical price chart

GOOG stock reached all-time highs on April 29th with a price of $1,289.27.

Alphabet stock price target is $1,351.70

How much a stock will be priced tomorrow or next week is quite unpredictable However, many stock price predictions are published every day by banks, financial institutions and independent analysts. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. We have 3 price forecasts for the Mountain View based company stock released in the last 30 days:
GOOG stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-5-15Deutsche BankRaises Target$1,300.00$1,400.007.7%
2019-4-30Deutsche BankLowers Target$1,385.00$1,300.00-6.1%
2019-2-5Piper Jaffray CompaniesRaises Targetn/a$1,355.00-
(in average)$1,342.50$1,351.701.0%
Moving in a range from $1,400.00 and $1,300.00, the price prediction for the Google parent stock is $1,351.70. In average, analysts' outlook on GOOG price forecast is stable from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since February, when Alphabet published its last earnings report, it stayed steady a neutral 0.53%. As soon as we get its posted EPS from the earnings report, we will update this review.
GOOG earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a8.14n/a
2017-Q3-n/a9.57n/a
2017-Q4-n/a9.8n/a
2018-Q12018-04-23n/a9.93n/a
2018-Q22018-07-23n/a11.75n/a
2018-Q32018-10-25n/a13.06n/a
2018-Q42019-02-04n/a12.77n/a
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, Alphabet annual revenues rocketed an outstanding 23.42% to $136,819.00 M USD from $110,855.00 marked in 2017. Likewise, its earnings margin (compared to sales) boosted to 22.46%, that is $30,736.00 million.

GOOG annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$59,730 M-$12,210 M20.4%-
2014$66,001 M10.50%$14,444 M21.9%18.30%
2015$74,989 M13.62%$16,348 M21.8%13.18%
2016$90,272 M20.38%$19,478 M21.6%19.15%
2017$110,855 M22.80%$12,662 M11.4%-34.99%
2018$136,819 M23.42%$30,736 M22.5%142.74%

Quarterly financial results

Alphabet reported $39,276.00 M in revenues for 2018-Q4, a 16.41% improvement compared to previous quarter. Reported quarter earnings marked $8,948.00 million with a profit margin of 22.78%. Profit margin slightly fell a -4.46% compared to previous quarter when profit margin was 27.24%. When comparing turnover to same quarter last year, Alphabet sales marked an amazing increase and skyrocketed a 21.51%. Looking back to recent quarterly results, Alphabet posted 3 negative quarters in a row.
GOOG quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$26,010 M-$3,520 M13.5%-
2017-Q3$27,772 M6.77%$6,732 M24.2%91.25%
2017-Q4$32,323 M16.39%$-3,020 M-9.3%-144.86%
2018-Q1$31,146 M-3.64%$9,401 M30.2%-411.29%
2018-Q2$32,657 M4.85%$3,195 M9.8%-66.01%
2018-Q3$33,740 M3.32%$9,192 M27.2%187.70%
2018-Q4$39,276 M16.41%$8,948 M22.8%-2.65%
2019-Q1$36,339 M-7.48%$6,657 M18.3%-25.60%

Alphabet ownership

When you are planning to buy a stock, it's always worth to overview its ownership structure.

Alphabet shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.02% of all shares. Investopedia has a good article about the top 5 Alphabet shareholders.

In case of Alphabet stock, 69.95% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for GOOG stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Alphabet:

GOOGAAPLADBEAKAMBCOR
Market cap$396.6 B$869.4 B$136.6 B$12.6 B$1.5 B
Total shares348.3 M4,600.0 M488.0 M164.1 M48.4 M
Float shares602.8 M4,340.0 M486.4 M159.9 M44.6 M
  - Institutional holdings (%)70.0%61.0%88.9%91.0%100.0%
  - Insider holdings (%)0.0%0.1%0.3%3.1%1.8%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Alphabet summary

Monday, May 20th, 2019
Open$1144.50
Close$1138.85
Day range$1131.44 - $1146.80
Previous close$1162.30
Session gain-2.02%
Average true range$26.88
50d mov avg$1,197.78
100d mov avg$1,146.27
200d mov avg$1,136.12
Daily pattern
Weekly pattern lb02a

Alphabet performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We compared Alphabet against Apple, Adobe, Akamai Technologies, Blucora, Baidu, eBay, Facebook, , Microsoft and Yandex in the following table:
Stock3m6m12m
GOOGAlphabet2.56%11.23%5.87%
AAPLApple11.33%-1.54%2.99%
ADBEAdobe7.86%17.15%17.54%
AKAMAkamai Technologi...10.08%13.44%0.51%
BCORBlucora15.60%7.67%-13.71%
BIDUBaidu-24.55%-31.37%-49.29%
EBAYeBay-2.12%29.05%-3.28%
FBFacebook14.03%32.80%1.43%
IAC6.03%33.39%51.96%
MSFTMicrosoft14.16%23.44%30.41%
YNDXYandex20.08%29.20%11.18%

Alphabet competitors

We chose a few stocks to conform a list of Alphabet competitors to examine if you are interested in investing in GOOG:

Latest Alphabet stock news