Alphabet Inc. (NASDAQ:GOOG – Get Free Report)’s share price dropped 2.3% during trading on Friday. The company traded as low as $335.50 and last traded at $336.91. 16,295,993 shares were traded during trading, a decline of 20% from the average session volume of 20,266,975 shares. The stock had previously closed at $344.91.
Key Alphabet News
Here are the key news stories impacting Alphabet this week:
- Positive Sentiment: Potential TPU sales boost estimates: Evercore raised its Alphabet forecasts, saying sales of Google’s in-house Tensor Processing Units could become a significant Google Cloud revenue driver—potentially representing as much as 35% of cloud revenue in 2027. Evercore raises Alphabet estimates on potential TPU hardware sales
- Positive Sentiment: AI and cloud momentum remain key bullish arguments: Recent coverage highlights Alphabet’s strong cloud growth, AI infrastructure demand, Gemini development and vertical integration. JPMorgan also raised its price target to $425 and maintained an overweight rating. Alphabet Stocks Rise as JPMorgan Lifts Target on Cloud Growth
- Positive Sentiment: Long-term technology initiatives advanced: Google reported a quantum-computing technique that reportedly reduces error rates by roughly 40 times. Separately, Waymo received approval to prepare for a Toronto robotaxi launch targeted for 2028, expanding Alphabet’s autonomous-driving opportunity. Google’s Waymo plans first Canada robotaxi service in Toronto 2028
- Neutral Sentiment: Content partnerships support AI: Google agreed to a multi-year partnership with CNN for access to news content and data for AI training. The deal may improve model development but also adds content licensing costs. CNN signs multi-year AI partnership with Google
- Negative Sentiment: Macro pressure is weighing on mega-cap technology stocks: A hotter-than-expected producer-price report reduced expectations for near-term Federal Reserve rate cuts, pressuring growth-stock valuations and contributing to weakness across major indexes.
- Negative Sentiment: Litigation headlines remain an overhang: Several law firms reiterated deadlines in a securities class-action lawsuit alleging investors were misled about Gemini AI training results. The repeated announcements do not establish liability, but they increase headline and potential legal risk. Kaplan Fox Alphabet class action reminder
- Negative Sentiment: Spending concerns persist: Investors remain focused on Alphabet’s heavy AI and data-center capital expenditures, which could pressure free cash flow if revenue growth does not keep pace. Competition in search and AI advertising adds to execution risk.
Wall Street Analysts Forecast Growth
A number of analysts have recently weighed in on GOOG shares. Roth Capital upped their target price on Alphabet from $435.00 to $440.00 and gave the company a “buy” rating in a research report on Thursday, July 23rd. Wedbush began coverage on Alphabet in a research report on Thursday, July 16th. They issued an “outperform” rating and a $445.00 price target on the stock. BMO Capital Markets boosted their price target on Alphabet from $455.00 to $465.00 and gave the company an “outperform” rating in a research note on Thursday, July 23rd. Sanford C. Bernstein cut their price objective on shares of Alphabet from $390.00 to $385.00 and set a “market perform” rating for the company in a research report on Thursday, July 23rd. Finally, New Street Research reduced their price objective on shares of Alphabet from $455.00 to $405.00 and set a “buy” rating on the stock in a research note on Friday, July 24th. Six equities research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Buy” and an average price target of $422.10.
Check Out Our Latest Report on Alphabet
Alphabet Stock Performance
The company has a current ratio of 2.72, a quick ratio of 2.64 and a debt-to-equity ratio of 0.16. The stock has a market capitalization of $4.12 trillion, a price-to-earnings ratio of 16.92, a PEG ratio of 1.00 and a beta of 1.19. The company’s 50-day simple moving average is $341.41 and its 200-day simple moving average is $348.88.
Alphabet (NASDAQ:GOOG – Get Free Report) last announced its earnings results on Thursday, July 23rd. The information services provider reported $9.11 EPS for the quarter, topping the consensus estimate of $2.87 by $6.24. The firm had revenue of $119.80 billion for the quarter, compared to the consensus estimate of $116.53 billion. Alphabet had a return on equity of 51.32% and a net margin of 54.77%. The business’s quarterly revenue was up 24.2% compared to the same quarter last year. During the same period in the previous year, the business earned $2.31 EPS. On average, analysts expect that Alphabet Inc. will post 20.54 EPS for the current year.
Alphabet Announces Dividend
The company also recently announced a quarterly dividend, which was paid on Monday, September 14th. Shareholders of record on Monday, September 7th were given a dividend of $0.22 per share. This represents a $0.88 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date of this dividend was Friday, September 4th. Alphabet’s dividend payout ratio is currently 4.42%.
Insider Transactions at Alphabet
In other Alphabet news, CAO Marsida Saraci sold 449 shares of the stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $333.20, for a total value of $149,606.80. Following the transaction, the chief accounting officer owned 27,386 shares in the company, valued at approximately $9,125,015.20. This represents a 1.61% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Frances Arnold sold 83 shares of the firm’s stock in a transaction that occurred on Wednesday, September 30th. The shares were sold at an average price of $340.45, for a total value of $28,257.35. Following the completion of the sale, the director directly owned 19,076 shares of the company’s stock, valued at $6,494,424.20. This trade represents a 0.43% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 420,865 shares of company stock worth $8,293,477 over the last three months. 12.99% of the stock is owned by company insiders.
Hedge Funds Weigh In On Alphabet
A number of large investors have recently modified their holdings of the company. Opal Wealth Advisors LLC grew its position in Alphabet by 81.3% in the 3rd quarter. Opal Wealth Advisors LLC now owns 4,459 shares of the information services provider’s stock worth $1,519,000 after purchasing an additional 1,999 shares in the last quarter. Rise Advisors LLC boosted its stake in Alphabet by 0.4% in the third quarter. Rise Advisors LLC now owns 8,738 shares of the information services provider’s stock valued at $2,977,000 after acquiring an additional 32 shares during the last quarter. James T. Borello RIA grew its position in shares of Alphabet by 23.8% during the 3rd quarter. James T. Borello RIA now owns 5,732 shares of the information services provider’s stock valued at $1,953,000 after acquiring an additional 1,103 shares during the period. Paradigm Strategies in Wealth Management LLC increased its stake in shares of Alphabet by 6.1% during the 3rd quarter. Paradigm Strategies in Wealth Management LLC now owns 769 shares of the information services provider’s stock worth $262,000 after purchasing an additional 44 shares during the last quarter. Finally, Cyndeo Wealth Partners LLC increased its stake in shares of Alphabet by 2.6% during the 3rd quarter. Cyndeo Wealth Partners LLC now owns 37,144 shares of the information services provider’s stock worth $12,657,000 after purchasing an additional 939 shares during the last quarter. 27.26% of the stock is currently owned by institutional investors.
About Alphabet
Alphabet Inc is a technology holding company best known as the parent company of Google. Established in 2015 through a corporate restructuring, Alphabet oversees Google and a collection of businesses focused on technology, innovation and emerging industries. Sundar Pichai serves as Alphabet’s chief executive officer and also leads Google.
Google is Alphabet’s primary business and operates an internet ecosystem that includes Google Search, online advertising, YouTube, Android, Chrome, Google Maps, Google Play and Google Photos.
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