Alphabet Inc. (NASDAQ:GOOG – Get Free Report)’s share price traded down 1.3% on Monday . The stock traded as low as $357.89 and last traded at $361.17. 18,553,726 shares changed hands during trading, a decline of 13% from the average session volume of 21,259,826 shares. The stock had previously closed at $365.76.
More Alphabet News
Here are the key news stories impacting Alphabet this week:
- Positive Sentiment: Google expanded Gemini with new features aimed at small businesses, which could help drive broader adoption of its AI tools and support future subscription and cloud revenue. Google Debuts Gemini Features Geared to Small Businesses
- Positive Sentiment: Alphabet’s AI momentum remains a support factor, with reports that Gemini app usage has doubled and Google Cloud is benefiting from major AI infrastructure deals, including support for Anthropic’s expansion. Google Backs $35 Billion Anthropic AI Infrastructure Financing Deal
- Neutral Sentiment: Several analyst notes and commentary remained constructive on Alphabet’s long-term growth profile, reinforcing the view that Search, Cloud, and AI can keep earnings growing over time.
- Negative Sentiment: A California judge denied Google and Meta a new trial in the youth social media addiction case, keeping legal risk and potential damages in focus for investors. Meta and Google denied new trial after landmark verdict in youth social media addiction case
- Negative Sentiment: Google Cloud also faced a disruption in India after a fire at a third-party data center caused intermittent network issues, adding an operational overhang for the cloud business. Fire at third-party facility disrupts Google Cloud network traffic in India
- Negative Sentiment: Investors are also digesting Alphabet’s heavy AI capex plans and related financing activity, including a reported $19 billion convertible preferred offering, which can raise concerns about near-term dilution and spending intensity. Alphabet (GOOGL) Unveils Massive $19B Convertible Preferred Stock with 6.25% Dividend
Analyst Ratings Changes
A number of research analysts have weighed in on GOOG shares. TD Cowen lifted their price target on shares of Alphabet from $450.00 to $475.00 and gave the company a “buy” rating in a research note on Tuesday. Scotiabank reaffirmed an “outperform” rating and issued a $450.00 price target (up from $400.00) on shares of Alphabet in a research note on Thursday, April 30th. Stifel Nicolaus set a $420.00 price target on shares of Alphabet in a research note on Wednesday, May 20th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Alphabet in a research note on Monday, April 20th. Finally, KeyCorp reaffirmed an “overweight” rating on shares of Alphabet in a research note on Wednesday, May 20th. Five research analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Buy” and an average price target of $376.78.
Alphabet Stock Performance
The stock’s 50-day moving average price is $353.44 and its 200 day moving average price is $328.39. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.92 and a quick ratio of 1.92. The firm has a market cap of $4.28 trillion, a P/E ratio of 26.95, a price-to-earnings-growth ratio of 1.55 and a beta of 1.22.
Alphabet (NASDAQ:GOOG – Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The information services provider reported $5.11 EPS for the quarter, topping analysts’ consensus estimates of $2.68 by $2.43. The business had revenue of $109.90 billion for the quarter, compared to analyst estimates of $106.96 billion. Alphabet had a net margin of 37.92% and a return on equity of 38.99%. The firm’s revenue for the quarter was up 21.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.81 earnings per share. As a group, equities analysts predict that Alphabet Inc. will post 14.29 EPS for the current year.
Alphabet Increases Dividend
The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 8th will be given a $0.22 dividend. This is a boost from Alphabet’s previous quarterly dividend of $0.21. This represents a $0.88 dividend on an annualized basis and a dividend yield of 0.2%. The ex-dividend date of this dividend is Monday, June 8th. Alphabet’s payout ratio is presently 6.71%.
Insiders Place Their Bets
In other news, major shareholder 2019 Gp L.L.C. Gv sold 87,475 shares of the business’s stock in a transaction on Friday, May 15th. The shares were sold at an average price of $23.75, for a total value of $2,077,531.25. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director John L. Hennessy sold 1,050 shares of the business’s stock in a transaction on Friday, May 15th. The stock was sold at an average price of $393.26, for a total transaction of $412,923.00. Following the completion of the sale, the director directly owned 2,531 shares in the company, valued at approximately $995,341.06. This represents a 29.32% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 193,016 shares of company stock valued at $17,282,549 over the last 90 days. 12.99% of the stock is currently owned by company insiders.
Hedge Funds Weigh In On Alphabet
A number of institutional investors have recently added to or reduced their stakes in the company. Providence Wealth Advisors LLC increased its holdings in Alphabet by 0.3% during the first quarter. Providence Wealth Advisors LLC now owns 10,508 shares of the information services provider’s stock worth $3,094,000 after buying an additional 29 shares during the last quarter. One Charles Private Wealth Services LLC increased its holdings in shares of Alphabet by 0.6% in the first quarter. One Charles Private Wealth Services LLC now owns 4,844 shares of the information services provider’s stock valued at $1,390,000 after purchasing an additional 29 shares during the last quarter. Ring Mountain Capital LLC boosted its position in shares of Alphabet by 0.9% in the fourth quarter. Ring Mountain Capital LLC now owns 3,554 shares of the information services provider’s stock valued at $1,174,000 after acquiring an additional 30 shares during the period. Cannon Financial Strategists Inc. boosted its position in shares of Alphabet by 1.9% in the fourth quarter. Cannon Financial Strategists Inc. now owns 1,589 shares of the information services provider’s stock valued at $499,000 after acquiring an additional 30 shares during the period. Finally, Financial Enhancement Group LLC boosted its position in shares of Alphabet by 2.3% in the first quarter. Financial Enhancement Group LLC now owns 1,323 shares of the information services provider’s stock valued at $380,000 after acquiring an additional 30 shares during the period. 27.26% of the stock is currently owned by institutional investors and hedge funds.
Alphabet Company Profile
Alphabet Inc (NASDAQ: GOOG) is a multinational technology holding company headquartered in Mountain View, California. Formed in 2015 through a corporate restructuring of Google, Alphabet serves as the parent to Google LLC and a portfolio of businesses collectively known as “Other Bets.” Google was originally founded in 1998 by Larry Page and Sergey Brin; Alphabet is led by CEO Sundar Pichai, who oversees Google and the broader company while the founders remain prominent shareholders and influential figures in the company’s history.
Alphabet’s core business centers on internet search and advertising, with Google Search and the company’s ad platforms (including Google Ads and AdSense) generating the majority of revenue by connecting advertisers with consumers worldwide.
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