Alphabet stock: buy or sell?

GOOGL stock price: $1,229.84 -0.72% At close on September 20th, 2019

Updated on:
September 20th, 2019

4

Shares of Alphabet declined an unpleasant -0.72% and closed at $1,229.84.

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 matches with 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.

Currently, Alphabet stock doesn't match any of these trading strategies, so our recommendation is not to buy.

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 GOOGL 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 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 month.

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
2019-8-2MKM Partnersn/aBuy
2019-7-29JMP Securitiesn/aOutperform
2019-7-26Wedbushn/aOutperform
2019-7-26Susquehanna Bancsharesn/an/a
2019-7-26Royal Bank of Canadan/aOutperform
2019-7-26Nomuran/aBuy
2019-7-26Morgan Stanleyn/aOverweight
2019-7-26Mizuhon/aBuy
2019-7-26Mizuhon/aBuy
2019-7-26KeyCorpn/aOverweight
2019-7-26JPMorgan Chase & Co.OverweightPositive
2019-7-26Jefferies Financial Groupn/aBuy
2019-7-26Jefferies Financial Groupn/aBuy
2019-7-26Credit Suisse Groupn/aOutperform
2019-7-26Credit Suisse Groupn/aOutperform

Alphabet stock analysis

Daily outlook

Shares of the Google parent Alphabet ended today at $1,229.84 and declined an unpleasant -0.72%.

The Google parent Alphabet closed today at $1,229.84 and declined an unpleasant -0.72%. Since last July when GOOGL stock price broke up the SMA200d line, it gained $105.55 (9.39%). Since SMA100d and SMA200d crossed up on May, GOOGL price climbed $93.25 per share (8.20%).

GOOGL stock chart (daily)

Weekly outlook

Shares of Alphabet slightly fell an unpleasant -0.82% this week.

Observing the weekly chart, price is in a simple uptrend, tested $1,142.75 level and now climbing back aiming its last top at $1,268.39. Far behind is the all-time high the Internet giant marked late April but price is just -5.18% below that top. Since price and SMA40w lines crossed up early July, GOOGL climbed $147.04 (13.58%). Since SMA20w and SMA40w crossed up late April, GOOGL price slid a -3.72%.

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 2,357.20%, with a yearly average of 157.10%. If you had invested $1,000 in Alphabet stock in 2004, it would worth $23,572.00 today.

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

Alphabet stock historical price chart

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

Alphabet stock price target is $1,469.50

Nobody can reliably foresee how stock prices may evolve in the future. 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 found 10 price targets for Alphabet stock:
GOOGL stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-7-29JMP SecuritiesRaises Targetn/a$1,450.00-
2019-7-26WedbushRaises Target$1,350.00$1,500.0011.1%
2019-7-26Susquehanna BancsharesRaises Targetn/a$1,550.00-
2019-7-26Royal Bank of CanadaRaises Targetn/a$1,425.00-
2019-7-26Morgan StanleyRaises Target$1,400.00$1,450.003.6%
2019-7-26MizuhoRaises Target$1,350.00$1,400.003.7%
2019-7-26JPMorgan Chase & Co.Raises Target$1,310.00$1,420.008.4%
2019-7-26Jefferies Financial GroupReiterates$1,450.00$1,500.003.4%
2019-7-26Jefferies Financial GroupRaises Target$1,450.00$1,500.003.4%
2019-7-26Credit Suisse GroupRaises Target$1,400.00$1,500.007.1%
(in average)$1,387.10$1,469.506.0%
Moving in a range from $1,550.00 and $1,400.00, the price forecast for Google stock is $1,469.50. In average, analysts' outlook on GOOGL price target is positive, upgrading the prediction by a 6.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

After posting its last earnings report on April, Alphabet . 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 revenues rocketed a dazzling 23.42% to $136,819.00 million USD 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) boosted 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 USD. When comparing this TTM figures with the last reported annuality, we can esteem the Google parent Alphabet business evolution since December 2018: Annual revenues up to March, compared to lastest yearly report, inched a fine 3.80%. Regarding profit margin, Alphabet decreased -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 M with a profit margin of 18.32%. Profit margin depreciated 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 amazing increase and climbed 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 a stock, it's worth to have a look 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$368.4 B$998.7 B$134.9 B$14.7 B$1.0 B
Total shares299.5 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 (%)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

Friday, September 20th, 2019
Open$1233.64
Close$1229.84
Day range$1223.58 - $1242.77
Previous close$1238.75
Session gain-0.72%
Average true range$18.50
50d mov avg$1,188.40
100d mov avg$1,154.95
200d mov avg$1,145.16
Daily pattern
Weekly pattern lb01a

Alphabet performance

To measure stock performance is always good to compare with competitors or related stocks. For Alphabet, the benchmark is made against Apple, Adobe, Akamai Technologies, Blucora, Baidu, eBay, Facebook, , Microsoft and Yandex.
Stock3m6m12m
GOOGLAlphabet9.28%1.84%4.92%
AAPLApple11.58%16.54%3.09%
ADBEAdobe-7.16%7.02%6.53%
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-0.63%15.57%16.57%
IAC5.37%5.18%9.72%
MSFTMicrosoft2.14%19.97%23.96%
YNDXYandex-8.33%1.30%8.39%

Alphabet competitors

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

Latest Alphabet stock news