Alphabet stock: buy or sell?
May 20th, 2019
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:
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||Yes|
|100d MA crossing up 200d MA||Yes|
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.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-5-15||Credit Suisse Group||n/a||Sell|
|2019-4-30||Royal Bank of Canada||n/a||Buy|
|2019-4-30||JPMorgan Chase & Co.||n/a||Buy|
|2019-4-30||Credit Suisse Group||n/a||Buy|
|2019-4-29||Goldman Sachs Group||n/a||Buy|
|2019-4-23||Goldman Sachs Group||n/a||Buy|
|2019-2-6||Goldman Sachs Group||n/a||Buy|
|2019-2-5||Piper Jaffray Companies||Positive||Overweight|
|2019-2-5||JPMorgan Chase & Co.||n/a||Buy|
Alphabet stock analysis
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%.
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%).
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 $1,351.70How 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:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-5-15||Deutsche Bank||Raises Target||$1,300.00||$1,400.00||7.7%|
|2019-4-30||Deutsche Bank||Lowers Target||$1,385.00||$1,300.00||-6.1%|
|2019-2-5||Piper Jaffray Companies||Raises Target||n/a||$1,355.00||-|
Financials and fundamental analysis
Earnings date and Earnings per ShareSince 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.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 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.
|2013||$59,730 M||-||$12,210 M20.4%||-|
|2014||$66,001 M||10.50%||$14,444 M21.9%||18.30%|
|2015||$74,989 M||13.62%||$16,348 M21.8%||13.18%|
|2016||$90,272 M||20.38%||$19,478 M21.6%||19.15%|
|2017||$110,855 M||22.80%||$12,662 M11.4%||-34.99%|
|2018||$136,819 M||23.42%||$30,736 M22.5%||142.74%|
Quarterly financial resultsAlphabet 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.
|2017-Q2||$26,010 M||-||$3,520 M13.5%||-|
|2017-Q3||$27,772 M||6.77%||$6,732 M24.2%||91.25%|
|2017-Q4||$32,323 M||16.39%||$-3,020 M-9.3%||-144.86%|
|2018-Q1||$31,146 M||-3.64%||$9,401 M30.2%||-411.29%|
|2018-Q2||$32,657 M||4.85%||$3,195 M9.8%||-66.01%|
|2018-Q3||$33,740 M||3.32%||$9,192 M27.2%||187.70%|
|2018-Q4||$39,276 M||16.41%||$8,948 M22.8%||-2.65%|
|2019-Q1||$36,339 M||-7.48%||$6,657 M18.3%||-25.60%|
Alphabet ownershipWhen 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:
|Market cap||$396.6 B||$869.4 B||$136.6 B||$12.6 B||$1.5 B|
|Total shares||348.3 M||4,600.0 M||488.0 M||164.1 M||48.4 M|
|Float shares||602.8 M||4,340.0 M||486.4 M||159.9 M||44.6 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 selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Monday, May 20th, 2019|
|Day range||$1131.44 - $1146.80|
|Average true range||$26.88|
|50d mov avg||$1,197.78|
|100d mov avg||$1,146.27|
|200d mov avg||$1,136.12|
Alphabet performanceStocks 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:
Alphabet competitorsWe chose a few stocks to conform a list of Alphabet competitors to examine if you are interested in investing in GOOG:
- Apple (AAPL)
- Adobe (ADBE)
- Akamai Technologies (AKAM)
- Blucora (BCOR)
- Baidu (BIDU)
- eBay (EBAY)
- Facebook (FB)
- Microsoft (MSFT)
- Yandex (YNDX)
Latest Alphabet stock news
- Investors.comStock Market Rebounds Bullishly; Facebook, Netflix, Alphabet Lead FANG RallyMay 15, 2019
- InvestorPlaceTo Boost GOOGL Stock, Alphabet Must Get Out of Its Own WayMay 8, 2019
- Seeking AlphaValuing Alphabet As Market Cap Moves Toward $1 TrillionMay 7, 2019
- InvestorPlaceHere’s Why You Should Buy The Dip In Alphabet StockMay 3, 2019
- InvestorPlaceAlphabet Stock Is Clearly a ShortMay 1, 2019