Alphabet stock: buy or sell?

GOOG stock price: $1,229.93 -0.71% At close on September 20th, 2019

Updated on:
September 20th, 2019

4

The search giant closed today at $1,229.93 and decreased a lame -0.71%.

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?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. That's why is so important to choose your own trading plan that fits your character as inversor. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with Alphabet stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean GOOG will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Alphabet stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. 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 15 positive ratings.
Is GOOG a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-6Deutsche Bankn/aBuy
2019-8-15Deutsche Bankn/aBuy
2019-7-26Wedbushn/aOutperform
2019-7-26Wedbushn/aOutperform
2019-7-26UBS Groupn/aBuy
2019-7-26Oppenheimern/aOutperform
2019-7-26JPMorgan Chase & Co.n/aBuy
2019-7-26Credit Suisse Groupn/aOutperform
2019-7-26Credit Suisse Groupn/aOutperform
2019-7-26Cowenn/aOutperform
2019-7-26Cowenn/aOutperform
2019-7-26BenchmarkBuyBuy
2019-7-26Benchmarkn/aBuy
2019-7-26Barclaysn/aBuy
2019-7-26Bank of AmericaBuyBuy

Alphabet stock analysis

Daily outlook

Alphabet shares decreased -0.71% to $1,229.93 today.

Alphabet shares decreased -0.71% to $1,229.93 today. On July GOOG price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. Since SMA100d and SMA200d crossed up on May, GOOG price climbed $65.66 per share (5.64%).

GOOG stock chart (daily)

Weekly outlook

The Google parent shares decreased -0.78% this week, ending at $1,229.93.

Weekly chart tells us that price is in a simple uptrend, tested $1,140.14 level and now climbing back aiming its last top at $1,265.55. Far behind is the all-time high Alphabet recorded late April but price is just -4.60% below that top. Early July GOOG price bounced up over the SMA of 40 weeks that acted as support stopping new slides. Since SMA20w and SMA40w crossed up late April, GOOG price slid a -3.32%.

GOOG stock chart (weekly)

Alphabet stock price history

Alphabet IPO was on August 19th, 2004 at $49.81 per share1. Since then, GOOG stock grew a 2,369.20%, with an average of 157.90% per year. If you had invested right after GOOG's IPO a $1,000 in Alphabet stock in 2004, it would worth $23,692.00 today.

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

Alphabet stock historical price chart

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

Alphabet stock price target is $1,455.90

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. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. We detected 11 price predictions for GOOG stock published in the last 30 days:
GOOG stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-15Deutsche BankRaises Target$1,400.00$1,475.005.4%
2019-7-26WedbushReiterates$1,350.00$1,500.0011.1%
2019-7-26WedbushRaises Target$1,350.00$1,500.0011.1%
2019-7-26OppenheimerRaises Target$1,342.00$1,370.002.1%
2019-7-26Credit Suisse GroupReiterates$1,400.00$1,500.007.1%
2019-7-26Credit Suisse GroupRaises Target$1,400.00$1,500.007.1%
2019-7-26CowenReiterates$1,400.00$1,500.007.1%
2019-7-26CowenRaises Target$1,400.00$1,500.007.1%
2019-7-26BenchmarkReiterates$1,315.00$1,360.003.4%
2019-7-26BenchmarkRaises Target$1,315.00$1,360.003.4%
2019-7-26Bank of AmericaReiterates$1,350.00$1,450.007.4%
(in average)$1,365.60$1,455.907.0%
The price target for Alphabet stock is $1,455.90, moving in a range between $1,500.00 and $1,360.00. In average, analysts' outlook on GOOG price target is positive, improving the prediction by a 7.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

After presenting its last earnings report on February, Alphabet . Unfortunately, reported EPS is not yet available in our database.
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 turnover climbed an astounding 23.42% to $136,819.00 million dollars from $110,855.00 marked in 2017. Likewise, its income margin (compared to sales) rocketed 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 boosted a 21.51%. Looking back to recent quarterly results, Alphabet posted 3 positive 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 invest in a stock, it's worth to review 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.

For a better understanding, the following table shows ownership data compared to other related companies:

GOOGAAPLADBEAKAMBCOR
Market cap$427.2 B$998.7 B$136.5 B$14.7 B$1.0 B
Total shares347.3 M4,520.0 M485.4 M163.9 M48.6 M
Float shares601.6 M4,260.0 M483.7 M160.5 M45.0 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

Friday, September 20th, 2019
Open$1233.12
Close$1229.93
Day range$1223.08 - $1243.27
Previous close$1238.71
Session gain-0.71%
Average true range$18.35
50d mov avg$1,187.29
100d mov avg$1,152.92
200d mov avg$1,140.49
Daily pattern
Weekly pattern lb01a

Alphabet performance

To measure stock performance is always good to benchmark with competitors or related stocks. For Alphabet, the comparison is made against Apple, Adobe, Akamai Technologies, Blucora, Baidu, eBay, Facebook, , Microsoft and Yandex.
Stock3m6m12m
GOOGAlphabet9.63%2.03%5.47%
AAPLApple11.58%16.54%3.09%
ADBEAdobe-6.04%8.31%7.81%
AKAMAkamai Technologi...13.85%25.55%21.67%
BCORBlucora-32.28%-36.15%-41.87%
BIDUBaidu-7.82%-35.36%-52.91%
EBAYeBay1.13%10.94%19.90%
FBFacebook-0.52%15.70%16.70%
IAC5.37%5.18%9.72%
MSFTMicrosoft2.14%19.97%23.96%
YNDXYandex-4.05%6.03%13.45%

Alphabet competitors

One check before trading any stock is to review a list of its competitors, in this case for Alphabet. We selected 10 companies as Alphabet competitors as they are in the same industry or have similar market objectives.

Latest Alphabet stock news