Is Alphabet Stock a Good Investment?

Alphabet Investment Advice

GOOGL

To provide specific investment advice or recommendations on Alphabet Inc Class A stock, we recommend investors consider the following general factors when evaluating Alphabet Inc Class A. This will help you to make an informed decision on whether to include Alphabet in one of your diversified portfolios:

Examine Alphabet's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Alphabet's leadership team and their track record. Good management can help Alphabet navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Interactive Media & Services space and any emerging trends that could impact Alphabet's business and its evolving consumer preferences.
Compare Alphabet's performance and market position to its competitors. Analyze how Alphabet is positioned in terms of product offerings, innovation, and market share.
Check if Alphabet pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Alphabet's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Alphabet Inc Class A stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Alphabet Inc Class A is a good investment.

Sell

Buy

Cautious Hold

Macroaxis provides advice on Alphabet Class A to complement and cross-verify current analyst consensus on Alphabet Inc Class A. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Alphabet is not overpriced, please confirm all Alphabet Class A fundamentals, including its book value per share, retained earnings, and the relationship between the cash and equivalents and target price . Given that Alphabet Class A has a price to earning of 1.30 X, we suggest you to validate Alphabet Inc Class A market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Market Performance	Very Weak	Details
Volatility	Very steady	Details
Hype Condition	Stale	Details
Current Valuation	Fairly Valued	Details
Odds Of Distress	Low	Details
Economic Sensitivity	Follows the market closely	Details
Investor Sentiment	Alarmed	Details
Analyst Consensus	Strong Buy	Details
Financial Strenth (F Score)	Healthy	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine Alphabet Stock

Researching Alphabet's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 81.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.03. Alphabet Class A recorded earning per share (EPS) of 7.55. The entity last dividend was issued on the 9th of December 2024. The firm had 20:1 split on the 18th of July 2022.

To determine if Alphabet is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Alphabet's research are outlined below:

	Over 81.0% of the company shares are owned by institutional investors
	Latest headline from nypost.com: OpenAI considers taking on Google with browser, partnering with Samsung report

Alphabet Quarterly Cost Of Revenue

36.47 Billion

Alphabet uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Alphabet Inc Class A. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Alphabet's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	30th of January 2024 Upcoming Quarterly Report	View
	23rd of April 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	30th of January 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact Alphabet's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Alphabet's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2005-07-21	2005-06-30	0.0305	0.034	0.0035	11
2005-02-01	2004-12-31	0.0195	0.023	0.0035	17
2004-10-21	2004-09-30	0.014	0.0175	0.0035	25
2005-10-20	2005-09-30	0.034	0.038	0.004	11
2006-01-31	2005-12-31	0.044	0.0385	-0.0055	12
2006-07-20	2006-06-30	0.0555	0.0625	0.007	12
2006-04-20	2006-03-31	0.0495	0.0575	0.008	16
2007-04-19	2007-03-31	0.0825	0.092	0.0095	11

Know Alphabet's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Alphabet is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Alphabet Inc Class A backward and forwards among themselves. Alphabet's institutional investor refers to the entity that pools money to purchase Alphabet's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Northern Trust Corp	2024-09-30	59.5 M
Wellington Management Company Llp	2024-06-30	57.1 M
Goldman Sachs Group Inc	2024-06-30	50.3 M
Legal & General Group Plc	2024-06-30	50.1 M
Fisher Asset Management, Llc	2024-09-30	49.9 M
Bank Of New York Mellon Corp	2024-06-30	49.5 M
Amvescap Plc.	2024-06-30	45.1 M
Massachusetts Financial Services Company	2024-09-30	43.8 M
Ubs Asset Mgmt Americas Inc	2024-09-30	40.5 M
Vanguard Group Inc	2024-09-30	499.6 M
Blackrock Inc	2024-06-30	421.1 M

Note, although Alphabet's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Alphabet's market capitalization trends

The company currently falls under 'Mega-Cap' category with a current market capitalization of 2.03 T.

Market Cap

689.9 Billion

Alphabet's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.20	0.11
Return On Capital Employed	0.26	0.24
Return On Assets	0.18	0.10
Return On Equity	0.26	0.27

The company has Profit Margin (PM) of 0.28 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.32 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.32.

Determining Alphabet's profitability involves analyzing its financial statements and using various financial metrics to determine if Alphabet is a good buy. For example, gross profit margin measures Alphabet's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Alphabet's profitability and make more informed investment decisions.

Alphabet's Earnings Breakdown by Geography

Evaluate Alphabet's management efficiency

Alphabet Class A has return on total asset (ROA) of 0.1648 % which means that it generated a profit of $0.1648 on every $100 spent on assets. This is way below average. Similarly, it shows a return on equity (ROE) of 0.321 %, meaning that it generated $0.321 on every $100 dollars invested by stockholders. Alphabet's management efficiency ratios could be used to measure how well Alphabet manages its routine affairs as well as how well it operates its assets and liabilities. Return On Equity is expected to rise to 0.27 this year, although the value of Return On Tangible Assets will most likely fall to 0.11. At this time, Alphabet's Total Current Assets are quite stable compared to the past year. Intangibles To Total Assets is expected to rise to 0.09 this year, although the value of Net Tangible Assets will most likely fall to about 174.2 B.

	Last Reported	Projected for Next Year
Book Value Per Share	22.44	23.56
Tangible Book Value Per Share	20.13	21.13
Enterprise Value Over EBITDA	18.05	22.20
Price Book Value Ratio	6.23	5.91
Enterprise Value Multiple	18.05	22.20
Price Fair Value	6.23	5.91
Enterprise Value	651 B	683.5 B

At Alphabet Class A, effective management practices are pivotal to sustaining long-term profitability. We delve into financial metrics and market conditions to provide a comprehensive analysis of the stock's prospects.

Dividend Yield

0.0049

Forward Dividend Yield

0.0049

Forward Dividend Rate

0.8

Beta

1.034

Basic technical analysis of Alphabet Stock

As of the 23rd of November, Alphabet shows the Mean Deviation of 1.19, risk adjusted performance of 0.0164, and Downside Deviation of 1.91. Alphabet Class A technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm Alphabet Class A standard deviation, maximum drawdown, as well as the relationship between the Maximum Drawdown and expected short fall to decide if Alphabet Class A is priced correctly, providing market reflects its regular price of 164.76 per share. Given that Alphabet has jensen alpha of (0.07), we suggest you to validate Alphabet Inc Class A's prevailing market performance to make sure the company can sustain itself at a future point.

Alphabet's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Alphabet insiders, such as employees or executives, is commonly permitted as long as it does not rely on Alphabet's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Alphabet insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Walker John Kent over six months ago Acquisition by Walker John Kent of 97120 shares of Alphabet subject to Rule 16b-3
		Walker John Kent over a year ago Bona fide gift to Walker John Kent of 35799 shares of Alphabet Class subject to Section 16
		Walker John Kent over a year ago Sale by Walker John Kent of 23531 shares of Alphabet Class
		Robin Washington over a year ago Acquisition by Robin Washington of 156 shares of Alphabet Class subject to Rule 16b-3

Alphabet's Outstanding Corporate Bonds

Alphabet issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Alphabet Class A uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Alphabet bonds can be classified according to their maturity, which is the date when Alphabet Inc Class A has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	ALPHABET INC Corp Bond US02079KAD90	View
	ALPHABET INC 1998 Corp Bond US02079KAC18	View
	ALPHABET INC Corp Bond US02079KAF49	View
	ALPHABET INC Corp Bond US02079KAE73	View
	ALPHABET INC Corp Bond US02079KAH05	View
	ALPHABET INC Corp Bond US02079KAG22	View
	ALPHABET INC Corp Bond US02079KAJ60	View

View All Alphabet Corporate Bonds

Understand Alphabet's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Alphabet's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.0164
	Market Risk Adjusted Performance	0.0283
	Mean Deviation	1.19
	Semi Deviation	1.83
	Downside Deviation	1.91
	Coefficient Of Variation	6797.78
	Standard Deviation	1.56
	Variance	2.44
	Information Ratio	(0.07)
	Jensen Alpha	(0.07)
	Total Risk Alpha	(0.23)
	Sortino Ratio	(0.06)
	Treynor Ratio	0.0183
	Maximum Drawdown	8.73
	Value At Risk	(2.44)
	Potential Upside	2.34
	Downside Variance	3.64
	Semi Variance	3.34
	Expected Short fall	(1.06)
	Skewness	(0.58)
	Kurtosis	1.17

	Risk Adjusted Performance	0.0164
	Market Risk Adjusted Performance	0.0283
	Mean Deviation	1.19
	Semi Deviation	1.83
	Downside Deviation	1.91
	Coefficient Of Variation	6797.78
	Standard Deviation	1.56
	Variance	2.44
	Information Ratio	(0.07)
	Jensen Alpha	(0.07)
	Total Risk Alpha	(0.23)
	Sortino Ratio	(0.06)
	Treynor Ratio	0.0183
	Maximum Drawdown	8.73
	Value At Risk	(2.44)
	Potential Upside	2.34
	Downside Variance	3.64
	Semi Variance	3.34
	Expected Short fall	(1.06)
	Skewness	(0.58)
	Kurtosis	1.17

Consider Alphabet's intraday indicators

Alphabet intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Alphabet stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	0.0154
	Daily Balance Of Power	(1.12)
	Rate Of Daily Change	0.98
	Day Median Price	165.18
	Day Typical Price	165.04
	Market Facilitation Index	2.56
	Price Action Indicator	(1.86)
	Period Momentum Indicator	(2.87)
	Relative Strength Index	70.26

Alphabet Corporate Filings

F4	21st of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify
	8th of November 2024 Other Reports	View Verify
10Q	30th of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations	View Verify
8K	29th of October 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify

Alphabet time-series forecasting models is one of many Alphabet's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Alphabet's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Alphabet Stock media impact

Far too much social signal, news, headlines, and media speculation about Alphabet that are available to investors today. That information is available publicly through Alphabet media outlets and privately through word of mouth or via Alphabet internal channels. However, regardless of the origin, that massive amount of Alphabet data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Alphabet news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Alphabet relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Alphabet's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Alphabet alpha.

Alphabet Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Alphabet can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Alphabet Class A Historical Investor Sentiment

Investor biases related to Alphabet's public news can be used to forecast risks associated with an investment in Alphabet. The trend in average sentiment can be used to explain how an investor holding Alphabet can time the market purely based on public headlines and social activities around Alphabet Inc Class A. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Alphabet's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Alphabet and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Alphabet news discussions. The higher the estimate score, the more favorable the investor's outlook on Alphabet.

Alphabet Corporate Management

Ivy Ross	VP Products	Profile
Prabhakar Raghavan	Senior Google	Profile
Kent Walker	Chief Affairs	Profile
Philipp Schindler	Senior Google	Profile

When determining whether Alphabet Class A is a strong investment it is important to analyze Alphabet's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Alphabet's future performance. For an informed investment choice regarding Alphabet Stock, refer to the following important reports: