Alphabet stock: buy or sell?
Updated on:
February 27th, 2020
2
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 plan helps to make decisions easier, quicker and with less hesitations. 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, hence this is not a suitable entry point.
| Buy setup | Elegible |
|---|---|
| New all-time high | No |
| New 52 week high | No |
| Price crossing up 200d MA | No |
| 100d MA crossing up 200d MA | No |
Is Alphabet stock a buy?
Banks and financial institutions post stock ratings everyday.
Unfortunately, we couldn't detect any rating for GOOGL stock for the last month.Alphabet stock analysis
Daily outlook
After reaching all time highs on Feb 19th, Google plummed -5.43% today to $1,314.95.
After marking all time highs on Feb 19th, Google plummed -5.43% to $1,314.95. In this session, the Mountain View based company stock crossed down the SMA100d line. If you are using SMA100d line as stop loss trigger, double check your position in this stock. On Feb 19th, GOOGL hit new all time highs, pushing higher previous ATH of $1,530.56 recorded on February/18. New ATHs are usual entry points for many trading setups as there aren't higher resistences.
Weekly outlook
Shares of the Internet giant closed this week at $1,314.95 and plummed a scary -11.36%.
The support didn't resisted and GOOGL fell deeper. Possible next supports for GOOGL stock are 1268.5. Not so far away is the last price record the Internet giant marked last week. Since early July 2019 when GOOGL stock price broke up the SMA40w line, it gained $232.15 (21.44%). Late April 2019, SMA20w and SMA40w crossed up triggering a rise of 2.94%.
Alphabet stock price history
Alphabet stock went public on August 19th, 2004 with a price of $50.051. Since then, GOOGL stock surged a 2,527.30%, with a yearly average of 168.50%. If you had invested $1,000 in Alphabet stock in 2004, it would worth $25,273.00 today.
1: Adjusted price after possible price splits or reverse-splits.
Alphabet stock historical price chart
GOOGL stock reached all-time highs on February/19 with a price of $1,530.74.
Alphabet stock price target
How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last 30 days we have not detected any price target for Alphabet stock by any trusted analyst.Financials and fundamental analysis
Earnings date and Earnings per Share
Since last April, when Alphabet posted its last earnings report, it . Unfortunately, reported EPS is not yet available in our database.| Quarter | Reporting date | Estimated EPS | Actual EPS | Surprise |
|---|---|---|---|---|
| 2017-Q2 | - | n/a | 8.14 | n/a |
| 2017-Q3 | 2017-10-26 | 8.33 | 9.57 | 14.9% |
| 2017-Q4 | 2018-02-01 | 9.98 | 9.7 | -2.8% |
| 2018-Q1 | 2018-04-23 | 9.21 | 9.93 | 7.8% |
| 2018-Q2 | 2018-07-23 | 9.45 | 11.75 | 24.3% |
| 2018-Q3 | 2018-10-25 | 10.54 | 13.06 | 23.9% |
| 2018-Q4 | 2019-02-04 | 11.08 | 12.77 | 15.3% |
| 2019-Q1 | 2019-04-22 | 10.59 | n/a | n/a |
| 2019-Q2 | - | n/a | n/a | n/a |
| 2019-Q3 | - | n/a | n/a | n/a |
Annual financial results
Compared to 2017, last anual sales report draw an amazing growth of 23.42% to $136,819.00 M dollars. When comparing 2018 vs 2017, similarly, profit margin (that is, the net income divided by revenues) boosted a 11.04% to 22.46%. Alphabet fiscal year ends in December, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Alphabet TTM sales up to March 2019 were $142,012.00 and income $27,992.00 M dollars. When comparing this TTM figures with the last reported annuality, we can esteem the Internet giant business evolution since December 2018: Annual sales up to March, compared to lastest yearly report, grew a fine 3.80%. Regarding profit margin, Alphabet depreciated -2.75% to 22.46%| Year | Sales | YoY | Income/(margin) | YoY |
|---|---|---|---|---|
| 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% |
| TTM | $142,012 M | 3.80% | $27,992 M19.7% | -8.93% |
Quarterly financial results
Alphabet posted $36,339.00 M in sales for 2019-Q1, a -7.48% decline compared to previous quarter. Reported quarter income marked $6,657.00 M with a profit margin of 18.32%. Profit margin slightly fell a -4.46% compared to previous quarter when profit margin was 22.78%. When comparing revenues to same quarter last year, Alphabet sales marked an astounding increase and rocketed a 16.67%.| Quarter | Sales1 | QoQ2 | Income1/(margin) | QoQ2 |
|---|---|---|---|---|
| 2017-Q2 | $26,010 M | - | $3,520 M13.5% | - |
| 2017-Q3 | $27,960 M | 7.50% | $6,730 M24.1% | 91.19% |
| 2017-Q4 | $32,323 M | 15.60% | $-3,020 M-9.3% | -144.87% |
| 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 ownership
When you are planning to buy a stock, it's always worth to check its ownership structure.Alphabet shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.14% of all shares. Investopedia has a good article about the top 5 Alphabet shareholders.
Bearish positions for GOOGL stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to Alphabet:
| GOOGL | |
|---|---|
| Market cap | $394.3 B |
| Total shares | 299.8 M |
| Float shares | 617.9 M |
| - Institutional holdings (%) | 82.5% |
| - Insider holdings (%) | 0.1% |
| Shares in short selling | 0.0% |
Alphabet summary
| Thursday, February 27th, 2020 | |
|---|---|
| Open | $1359.14 |
| Close | $1314.95 |
| Day range | $1314.24 - $1369.40 |
| Previous close | $1390.47 |
| Session gain | -5.43% |
| Average true range | $33.19 |
| 50d mov avg | $1,429.61 |
| 100d mov avg | $1,356.06 |
| 200d mov avg | $1,257.59 |
| Daily pattern | |
| Weekly pattern | lt06c |
Alphabet performance
Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. In the following table, we compare Alphabet to :| Stock | 3m | 6m | 12m |
|---|---|---|---|
| GOOGLAlphabet | 0.83% | 10.45% | 14.49% |
Alphabet competitors
Unfortunately, we could not find any public company that could be defined as Alphabet competitor. This doesn't mean Alphabet does not have any competitor in the market, it's just we could not detected it.Latest Alphabet stock news
- InvestorPlaceAlphabet Stock Is Still Not Reaping the Benefits of the Company’s GrowthAugust 1, 2019
- InvestorPlaceAlphabet is Making Up for Google’s Lost Cloud DecadeAugust 1, 2019
- Seeking AlphaAnalysts Are Still Underestimating Alphabet After Beating EarningsJuly 31, 2019
- InvestorPlace3 Reasons to Trust Alphabet Stock Despite Its Huge RallyJuly 31, 2019
- InvestorPlaceAlphabet Isn’t Struggling, but Google Stock Has Topped out for NowJuly 30, 2019