Alphabet Inc. (NASDAQ:GOOGL – Get Free Report)’s stock price dropped 1.3% on Tuesday . The stock traded as low as $342.70 and last traded at $344.98. Approximately 21,223,532 shares were traded during trading, a decline of 32% from the average session volume of 31,177,561 shares. The stock had previously closed at $349.39.
Alphabet News Roundup
Here are the key news stories impacting Alphabet this week:
- Positive Sentiment: Alphabet’s Waymo unit and Japanese partners GO and Nihon Kotsu plan to launch a fully autonomous commercial taxi service in Tokyo in 2027. The expansion, following Waymo’s Las Vegas rollout, strengthens the long-term growth opportunity for Alphabet’s autonomous-driving business. Waymo, Japanese partners target driverless taxi service in Tokyo in 2027
- Positive Sentiment: Analysts and market commentators continue to highlight Alphabet’s relatively low valuation, with a price-to-earnings ratio near 17, substantial Google Cloud demand and a reported backlog approaching $500 billion. These factors support the view that the market may be underpricing Alphabet’s AI and cloud growth. Alphabet Has 50% Upside and the Cheapest Multiple of the Big Six
- Positive Sentiment: OpenAI, Anthropic and Google DeepMind are discussing cooperation on AI safety standards. Collaboration could reduce regulatory uncertainty and help Alphabet shape rules governing advanced AI models. OpenAI, Google, Anthropic discussing collaboration on AI safety issues
- Neutral Sentiment: NVIDIA’s CUDA-Q Logical software includes benchmarks involving Alphabet hardware and could improve interoperability between GPUs and quantum processors. The development may create future infrastructure opportunities, but it is not an immediate earnings catalyst for GOOGL. Cashing in on the Qubit: NVIDIA Takes the Quantum Leap
- Negative Sentiment: Proposed Senate legislation could give federal regulators authority to block or restrict frontier AI models. Such oversight could delay product launches, increase compliance costs and threaten growth tied to Google Cloud’s large AI-related backlog. Senate’s Proposed AI Kill Switch Could Give Washington Veto Power Over Google’s Frontier Models
- Negative Sentiment: Investors are also concerned that heavy AI capital spending is pressuring free cash flow and has contributed to Alphabet suspending buybacks. Higher oil prices, Treasury yields and expectations for another Federal Reserve rate increase added to the day’s pressure on technology valuations. What Happens To Alphabet Stock If Free Cash Flow Stays Negative?
Analyst Upgrades and Downgrades
GOOGL has been the topic of several recent research reports. Wall Street Zen lowered shares of Alphabet from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. Morgan Stanley set a $400.00 price objective on shares of Alphabet and gave the company an “overweight” rating in a report on Thursday, July 23rd. Phillip Securities raised shares of Alphabet from a “moderate buy” rating to a “strong-buy” rating in a research note on Monday, July 27th. UBS Group lowered their target price on shares of Alphabet from $400.00 to $379.00 and set a “neutral” rating for the company in a report on Thursday, July 23rd. Finally, Wedbush reiterated an “outperform” rating and set a $445.00 target price on shares of Alphabet in a research report on Thursday, July 23rd. Five investment analysts have rated the stock with a Strong Buy rating, forty-five have issued a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, Alphabet has a consensus rating of “Buy” and an average target price of $420.19.
Alphabet Trading Down 1.3%
The stock has a market cap of $4.22 trillion, a price-to-earnings ratio of 17.33, a PEG ratio of 0.98 and a beta of 1.22. The company has a quick ratio of 2.64, a current ratio of 2.72 and a debt-to-equity ratio of 0.16. The business’s 50 day simple moving average is $346.41 and its 200 day simple moving average is $344.15.
Alphabet (NASDAQ:GOOGL – Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The information services provider reported $9.11 earnings per share for the quarter, topping the consensus estimate of $2.89 by $6.22. The company had revenue of $119.80 billion for the quarter, compared to analyst estimates of $117.07 billion. Alphabet had a net margin of 54.77% and a return on equity of 51.32%. On average, research analysts expect that Alphabet Inc. will post 20.52 EPS for the current fiscal year.
Alphabet Announces Dividend
The firm also recently disclosed a quarterly dividend, which was paid on Monday, September 14th. Investors of record on Monday, September 7th were given a dividend of $0.22 per share. This represents a $0.88 annualized dividend and a dividend yield of 0.3%. The ex-dividend date was Friday, September 4th. Alphabet’s dividend payout ratio is currently 4.42%.
Insider Buying and Selling
In other Alphabet news, Director Frances Arnold sold 82 shares of the business’s stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $337.71, for a total transaction of $27,692.22. Following the completion of the transaction, the director owned 18,995 shares of the company’s stock, valued at approximately $6,414,801.45. The trade was a 0.43% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Marsida Saraci sold 449 shares of the stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $333.20, for a total transaction of $149,606.80. Following the completion of the transaction, the chief accounting officer directly owned 27,386 shares of the company’s stock, valued at $9,125,015.20. This trade represents a 1.61% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 450,875 shares of company stock worth $11,984,482 in the last ninety days. 11.61% of the stock is owned by insiders.
Institutional Investors Weigh In On Alphabet
Several hedge funds and other institutional investors have recently made changes to their positions in GOOGL. Invesco Ltd. grew its holdings in Alphabet by 0.5% in the 4th quarter. Invesco Ltd. now owns 45,394,474 shares of the information services provider’s stock valued at $14,208,470,000 after buying an additional 208,362 shares during the last quarter. Fisher Asset Management LLC boosted its position in shares of Alphabet by 1.6% in the fourth quarter. Fisher Asset Management LLC now owns 38,106,033 shares of the information services provider’s stock valued at $11,927,189,000 after acquiring an additional 583,078 shares during the period. Amundi boosted its position in shares of Alphabet by 4.6% in the second quarter. Amundi now owns 33,203,350 shares of the information services provider’s stock valued at $11,865,809,000 after acquiring an additional 1,457,371 shares during the period. Nuveen LLC grew its stake in shares of Alphabet by 1.7% in the fourth quarter. Nuveen LLC now owns 29,166,806 shares of the information services provider’s stock worth $9,129,210,000 after acquiring an additional 478,848 shares during the last quarter. Finally, Jennison Associates LLC grew its stake in shares of Alphabet by 14.3% in the fourth quarter. Jennison Associates LLC now owns 21,851,279 shares of the information services provider’s stock worth $6,839,450,000 after acquiring an additional 2,729,364 shares during the last quarter. 40.03% of the stock is owned by institutional investors.
About Alphabet
Alphabet Inc is a technology and holding company founded in 2015 through a restructuring of Google. The company is headquartered in Mountain View, California, and operates globally, serving consumers, businesses, advertisers and developers across numerous countries and regions.
Alphabet’s largest business is Google Services, which includes Google Search, online advertising, YouTube, Android, Chrome, Google Maps, Google Play and hardware products such as Pixel devices. These products support activities including internet search, digital content distribution, mobile computing, online communications and advertising.
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