Alphabet stock: buy or sell?
Updated on:
May 21st, 2019
3
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. That's why is so important to choose your own trading plan that matches with your character as inversor. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.Just 1 of our buy setups matches with Alphabet stock now:
| 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 | Yes |
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 collected 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.| Date | Analyst / Broker | Previous rating | Current rating |
| 2019-5-15 | Deutsche Bank | n/a | Buy |
| 2019-4-30 | Morgan Stanley | Overweight | Overweight |
| 2019-3-4 | Needham & Company LLC | n/a | Buy |
| 2019-2-6 | Nomura | Buy | Outperform |
| 2019-2-5 | Wedbush | n/a | Outperform |
| 2019-2-5 | SunTrust Banks | n/a | Buy |
| 2019-2-5 | Royal Bank of Canada | n/a | Outperform |
| 2019-2-5 | Nomura | Buy | Buy |
| 2019-2-5 | Credit Suisse Group | n/a | Outperform |
| 2019-2-5 | Citigroup | Buy | Buy |
| 2019-2-5 | BMO Capital Markets | Market Perform | Market Perform |
| 2019-2-5 | BMO Capital Markets | Market Perform | Market Perform |
| 2019-2-5 | Barclays | Overweight | Overweight |
| 2019-1-7 | Pivotal Research | Hold | Buy |
| 2019-1-3 | Canaccord Genuity | Hold | Buy |
Alphabet stock analysis
Daily outlook
Google shares gained 0.85% to $1,154.44 today.
On Apr/29, GOOGL hit new all time highs, pushing higher previous ATH of $1,291.44 recorded on July. New ATHs are usual entry points for many trading setups as there aren't higher resistences. The Mountain View based company ended today at $1,154.44 and gained a slightly fine 0.85%. Since May 14th when SMA100d and SMA200d crossed up, GOOGL price gained $17.85 per share (1.57%).
Weekly outlook
Alphabet shares depreciated -1.23% this week, ending at $1,154.44. Late April GOOGL plummed a hair-raising -7.39% in just one week.
Not so far away is the last price record the Google parent 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 -9.63%. Since late February when GOOGL stock price broke up the SMA40w line, it gained $37.88 (3.39%).
Alphabet stock price history
Alphabet stock went public on August 19th, 2004 with a price of $50.051. Since then, GOOGL stock grew a 2,206.60%, with an average of 157.60% per year. If you had invested $1,000 in Alphabet stock in 2004, it would worth $22,066.00 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, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. 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. For the last 30 days we found 7 price predictions for GOOGL stock:| 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 | Morgan Stanley | Lowers Target | $1,500.00 | $1,425.00 | -5% |
| 2019-2-5 | SunTrust Banks | Lowers Target | n/a | $1,350.00 | - |
| 2019-2-5 | Royal Bank of Canada | Lowers Target | n/a | $1,300.00 | - |
| 2019-2-5 | Credit Suisse Group | Reiterates | $1,450.00 | $1,400.00 | -3.4% |
| 2019-2-5 | BMO Capital Markets | Lowers Target | n/a | $1,100.00 | - |
| 2019-1-7 | Pivotal Research | Upgrades | n/a | $1,240.00 | - |
| (in average) | $1,416.70 | $1,316.40 | -7.0% |
Financials and fundamental analysis
Earnings date and Earnings per Share
After posting its last earnings report on April 22nd, Alphabet eased a fatal -7.92%. As soon as we get its actual EPS from the earnings report, we will extend this report.| 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
In 2018, Alphabet annual sales climbed an amazing 23.42% to $136,819.00 M 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%. To have an updated picture of the financial situation of Alphabet, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Alphabet TTM sales up to March 2019 were $142,012.00 and earnings were $27,992.00 M USD. When comparing this TTM figures with the last reported annuality, we can esteem the Mountain View based company business evolution since December 2018: Annual revenues up to March, compared to lastest yearly report, inched a nice 3.80%. In contrast, profit margin (net income/sales) decreased at 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 million 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 slightly fell a -4.46% compared to previous quarter when profit margin was 22.78%. When comparing sales to same quarter last year, Alphabet sales marked an outstanding growth and boosted 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 invest in shares of 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 0.16% 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.
For a better understanding, the next table shows ownership data compared to other related stocks:
| GOOGL | AAPL | ADBE | AKAM | BCOR | |
|---|---|---|---|---|---|
| Market cap | $345.7 B | $842.2 B | $135.7 B | $12.8 B | $1.5 B |
| Total shares | 299.4 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 (%) | 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 selling | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
Alphabet summary
| Tuesday, May 21st, 2019 | |
|---|---|
| Open | $1154.48 |
| Close | $1154.44 |
| Day range | $1143.37 - $1158.00 |
| Previous close | $1144.66 |
| Session gain | 0.85% |
| Average true range | $26.94 |
| 50d mov avg | $1,202.16 |
| 100d mov avg | $1,153.76 |
| 200d mov avg | $1,144.50 |
| Daily pattern | |
| Weekly pattern | lb02a |
Alphabet performance
To better understand Alphabet performance you must becnhmark its gains with other related stocks in same sector or industry. We picked Apple, Adobe, Akamai Technologies, Blucora, Baidu, eBay, Facebook, , Microsoft and Yandex as the bechmarking frame for Alphabet stock.| Stock | 3m | 6m | 12m |
|---|---|---|---|
| GOOGLAlphabet | 3.39% | 12.07% | 6.49% |
| AAPLApple | 6.26% | 7.13% | -1.43% |
| ADBEAdobe | 7.40% | 23.28% | 14.17% |
| AKAMAkamai Technologi... | 11.51% | 14.91% | 1.82% |
| BCORBlucora | 16.54% | 8.03% | -17.46% |
| BIDUBaidu | -27.92% | -34.02% | -50.58% |
| EBAYeBay | -2.06% | 29.12% | -3.23% |
| FBFacebook | 14.16% | 40.30% | -0.05% |
| IAC | 4.30% | 31.23% | 49.49% |
| MSFTMicrosoft | 14.78% | 24.11% | 31.11% |
| YNDXYandex | 11.07% | 32.18% | 12.41% |
Alphabet competitors
We selected a few stocks to conform a list of Alphabet competitors to examine if you are interested in investing in GOOGL:- Apple (AAPL)
- Adobe (ADBE)
- Akamai Technologies (AKAM)
- Blucora (BCOR)
- Baidu (BIDU)
- eBay (EBAY)
- Facebook (FB)
- (IAC)
- 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