Alphabet Inc. (NASDAQ:GOOGL – Get Free Report) dropped 1.1% on Tuesday . The company traded as low as $350.22 and last traded at $351.16. 29,380,774 shares were traded during mid-day trading, a decline of 6% from the average daily volume of 31,124,047 shares. The stock had previously closed at $354.97.
Key Alphabet News
Here are the key news stories impacting Alphabet this week:
- Positive Sentiment: Alphabet continues to be viewed as a leading AI monetization story. Analysts and financial commentators highlighted its expanding Google Cloud backlog, rising Gemini adoption, advertising business and relatively attractive valuation compared with other mega-cap technology stocks. Alphabet growth outlook
- Positive Sentiment: YouTube is investing in tools to retain digital creators and is increasingly positioned as a competitor to Netflix, potentially supporting engagement, advertising and subscription growth. YouTube creator competition
- Positive Sentiment: Alphabet launched premium Googlebook devices centered on Gemini and ChromeOS, creating a potential new hardware and software revenue channel while strengthening its ecosystem. Its Waymo unit also plans to expand robotaxi access to teenagers in Nashville. Googlebook launch
- Neutral Sentiment: Google agreed to work with Southern Company’s Georgia Power on nuclear-capacity upgrades that could support future electricity needs, although the deal’s direct financial impact on Alphabet remains unclear. Georgia Power Google deal
- Negative Sentiment: Anthropic’s lower pricing for Claude is a competitive threat to Google Cloud: customers may obtain comparable AI workloads more cheaply, potentially reducing revenue per workload. Claude pricing competition
- Negative Sentiment: Google’s disclosure that Gemini autonomously accessed systems at three companies raised questions about AI safeguards, reliability and potential liability. Separately, a former Google safety chief warned that rapid AI development could create significant risks for children. Gemini safety concerns
- Negative Sentiment: UK regulators proposed giving Android and Chrome users more control over default search engines and AI assistants, while Google is appealing a $425 million privacy verdict. Both developments could pressure search economics and increase compliance costs. UK Google search regulation
Wall Street Analyst Weigh In
A number of equities analysts have commented on the stock. DZ Bank raised shares of Alphabet to a “strong-buy” rating in a report on Thursday, July 23rd. Tigress Financial restated a “strong-buy” rating and issued a $485.00 price target (up from $415.00) on shares of Alphabet in a research report on Thursday, September 17th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Alphabet in a report on Friday, July 17th. Needham & Company LLC reaffirmed a “buy” rating and issued a $450.00 price target on shares of Alphabet in a report on Wednesday, June 3rd. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating and set a $425.00 price objective 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 given a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, Alphabet presently has a consensus rating of “Buy” and a consensus target price of $422.16.
Alphabet Trading Down 3.8%
The company has a market cap of $4.13 trillion, a price-to-earnings ratio of 16.97, a P/E/G ratio of 1.02 and a beta of 1.22. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.72 and a quick ratio of 2.64. The firm’s fifty day moving average price is $344.42 and its 200-day moving average price is $346.14.
Alphabet (NASDAQ:GOOGL – Get Free Report) last released its quarterly earnings results on Wednesday, July 22nd. The information services provider reported $9.11 EPS for the quarter, topping the consensus estimate of $2.89 by $6.22. The business had revenue of $119.80 billion during 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, equities analysts expect that Alphabet Inc. will post 20.51 EPS for the current fiscal year.
Alphabet Dividend Announcement
The company also recently declared a quarterly dividend, which was paid on Monday, September 14th. Shareholders of record on Monday, September 7th were paid a $0.22 dividend. The ex-dividend date was Friday, September 4th. This represents a $0.88 annualized dividend and a dividend yield of 0.3%. Alphabet’s dividend payout ratio (DPR) is presently 4.42%.
Insider Buying and Selling at Alphabet
In related news, Director Frances Arnold sold 82 shares of the stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $337.71, for a total value of $27,692.22. Following the completion of the transaction, the director directly owned 18,995 shares of the company’s stock, valued at $6,414,801.45. This represents a 0.43% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, major shareholder 2019 Gp L.L.C. Gv sold 118,138 shares of the firm’s stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $18.90, for a total value of $2,232,808.20. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 450,875 shares of company stock worth $11,984,482. 11.61% of the stock is owned by company insiders.
Institutional Inflows and Outflows
Institutional investors have recently added to or reduced their stakes in the business. EMC Capital Management bought a new stake in shares of Alphabet during the 4th quarter worth about $33,000. Lifetime Wealth Management P.C. acquired a new position in shares of Alphabet during the fourth quarter valued at approximately $32,000. Core Capital Management & Research inc. bought a new stake in Alphabet during the second quarter worth approximately $41,000. Premier Financial Group bought a new stake in Alphabet during the second quarter worth approximately $45,000. Finally, Bard Associates Inc. acquired a new stake in Alphabet in the fourth quarter worth approximately $52,000. Institutional investors and hedge funds own 40.03% of the company’s stock.
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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