Alphabet stock: buy or sell?

GOOGL stock price: $1,144.66 -2.06% At close on May 20th, 2019

Updated on:
May 20th, 2019

3

Shares of the search giant eased a fateful -2.06% and closed at $1,144.66.

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?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Having a trading plan 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.

Check the only buy setup that matches with Alphabet stock now:

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

Is Alphabet stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we detected 15 ratings published for GOOGL stock in the last 30 days.

The general sentiment of these ratings is bullish for GOOGL stock, with 13 positive ratings.
Is GOOGL a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-5-15Deutsche Bankn/aBuy
2019-4-30Morgan StanleyOverweightOverweight
2019-3-4Needham & Company LLCn/aBuy
2019-2-6NomuraBuyOutperform
2019-2-5Wedbushn/aOutperform
2019-2-5SunTrust Banksn/aBuy
2019-2-5Royal Bank of Canadan/aOutperform
2019-2-5NomuraBuyBuy
2019-2-5Credit Suisse Groupn/aOutperform
2019-2-5CitigroupBuyBuy
2019-2-5BMO Capital MarketsMarket PerformMarket Perform
2019-2-5BMO Capital MarketsMarket PerformMarket Perform
2019-2-5BarclaysOverweightOverweight
2019-1-7Pivotal ResearchHoldBuy
2019-1-3Canaccord GenuityHoldBuy

Alphabet stock analysis

Daily outlook

The Internet giant shares eased -2.06% to $1,144.66 today.

On April/29, GOOGL hit a new all time high, pushing higher than on July tops. Check different trading setups that use ATHs as triggers. Shares of the search giant eased a fateful -2.06% and closed at $1,144.66. On Tuesday, SMA100d and SMA200d crossed up triggering a rise of 0.71%.

GOOGL stock chart (daily)

Weekly outlook

Shares of Google decreased a fatal -2.06% this week. Late April GOOGL plummed a bloodcurdling -7.39% in just one week.

Not so far away is the last all-time high Alphabet marked late April. Price pattern shows an uptrend with two rising tops and bottoms, and now trading upwards to the $1,296.97 resistance. Since SMA20w and SMA40w crossed up late April, GOOGL price slid a -10.39%. Since late February when GOOGL stock price broke up the SMA40w line, it gained $28.10 (2.52%).

GOOGL stock chart (weekly)

Alphabet stock price history

Alphabet IPO was on August 19th, 2004 at $50.05 per share1. Since then, GOOGL stock surged a 2,187.00%, with a yearly average of 156.20%. If you had invested right after GOOGL's IPO a $1,000 in Alphabet stock in 2004, it would worth $21,870.00 today.

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

Alphabet stock historical price chart

GOOGL stock reached all-time highs on Apr 29th with a price of $1,296.97.

Alphabet stock price target is $1,316.40

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. We found 7 price predictions for the Internet giant stock posted in the last month:
GOOGL stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-5-15Deutsche BankRaises Target$1,300.00$1,400.007.7%
2019-4-30Morgan StanleyLowers Target$1,500.00$1,425.00-5%
2019-2-5SunTrust BanksLowers Targetn/a$1,350.00-
2019-2-5Royal Bank of CanadaLowers Targetn/a$1,300.00-
2019-2-5Credit Suisse GroupReiterates$1,450.00$1,400.00-3.4%
2019-2-5BMO Capital MarketsLowers Targetn/a$1,100.00-
2019-1-7Pivotal ResearchUpgradesn/a$1,240.00-
(in average)$1,416.70$1,316.40-7.0%
Moving in a range from $1,425.00 and $1,100.00, the price target for GOOGL stock is $1,316.40. In average, analysts' outlook on GOOGL price target is negative, reducing the forecast by a -7.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since last Apr 22nd, when Alphabet published its last earnings report, it fell a tragic -8.70%. Unfortunately, reported EPS is not yet available in our database.
GOOGL earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a8.14n/a
2017-Q32017-10-268.339.5714.9%
2017-Q42018-02-019.989.7-2.8%
2018-Q12018-04-239.219.937.8%
2018-Q22018-07-239.4511.7524.3%
2018-Q32018-10-2510.5413.0623.9%
2018-Q42019-02-0411.0812.7715.3%
2019-Q12019-04-2210.59n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, Alphabet annual sales climbed an extraordinary 23.42% to $136,819.00 million dollars from $110,855.00 marked in 2017. When comparing 2018 vs 2017, in the same way, profit margin (that is, the net income divided by revenues) skyrocketed a 11.04% to 22.46%.

Alphabet presents anual results 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 earnings $27,992.00 M dollars. When comparing this TTM figures with the last reported annuality, we can review the Mountain View based company business evolution since December 2018: Annual sales up to March, compared to lastest yearly report, raised a decent 3.80%. Regarding profit margin, Alphabet declined -2.75% to 22.46%

GOOGL 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%
TTM $142,012 M3.80%$27,992 M19.7%-8.93%

Quarterly financial results

Alphabet posted $36,339.00 M in sales for 2019-Q1, a -7.48% less compared to previous quarter. Reported quarter income marked $6,657.00 million with a profit margin of 18.32%. Profit margin decreased a -4.46% compared to previous quarter when profit margin was 22.78%. When comparing turnover to same quarter last year, Alphabet sales marked an outstanding gain and rocketed a 16.67%.
GOOGL quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$26,010 M-$3,520 M13.5%-
2017-Q3$27,960 M7.50%$6,730 M24.1%91.19%
2017-Q4$32,323 M15.60%$-3,020 M-9.3%-144.87%
2018-Q1$31,146 M-3.64%$9,401 M30.2%-411.29%
2018-Q2$32,657 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 shares of a company, 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 0.16% 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:

GOOGLAAPLADBEAKAMBCOR
Market cap$342.8 B$869.4 B$134.4 B$12.6 B$1.5 B
Total shares299.4 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 (%)81.0%61.0%88.9%91.0%100.0%
  - Insider holdings (%)0.2%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$1153.00
Close$1144.66
Day range$1138.14 - $1152.45
Previous close$1168.78
Session gain-2.06%
Average true range$27.87
50d mov avg$1,202.65
100d mov avg$1,152.70
200d mov avg$1,144.93
Daily pattern
Weekly pattern lb02a

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 Apple, Adobe, Akamai Technologies, Blucora, Baidu, eBay, Facebook, , Microsoft and Yandex:
Stock3m6m12m
GOOGLAlphabet2.52%11.12%5.59%
AAPLApple11.33%-1.54%2.99%
ADBEAdobe6.39%22.12%13.09%
AKAMAkamai Technologi...10.08%13.44%0.51%
BCORBlucora15.60%7.67%-13.71%
BIDUBaidu-29.68%-35.63%-51.78%
EBAYeBay-2.12%29.05%-3.28%
FBFacebook12.87%38.71%-1.19%
IAC6.03%33.39%51.96%
MSFTMicrosoft14.16%23.44%30.41%
YNDXYandex9.44%30.24%10.75%

Alphabet competitors

We picked a few stocks to conform a list of Alphabet competitors to review if you are interested in investing in GOOGL:

Latest Alphabet stock news