GOOGL Stock Overview
Alphabet Inc. provides various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America.
No risks detected for GOOGL from our risk checks.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$97.50|
|52 Week High||US$151.55|
|52 Week Low||US$96.87|
|1 Month Change||-11.64%|
|3 Month Change||-12.71%|
|1 Year Change||-28.22%|
|3 Year Change||61.69%|
|5 Year Change||100.60%|
|Change since IPO||3,786.98%|
Recent News & Updates
Alphabet (NASDAQ:GOOGL) Seems To Use Debt Rather Sparingly
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
UK communications regulator to probe digital markets dominated by Amazon, Google
UK digital regulator Ofcom plans to conduct a range of investigations into competition in digital markets, including internet messaging, smart devices and cloud computing, Bloomberg reported on Thursday. The announcement comes amid a series of global tech regulation in recent times. The communications regulator initially plans to look at whether the hyperscale cloud providers, including Alphabet's Google Cloud (NASDAQ:GOOG) (NASDAQ:GOOGL), Microsoft's (NASDAQ:MSFT) Azure and Amazon's (NASDAQ:AMZN) AWS, are limiting innovation and growth. These tech giants receive around 81% of the revenues in the UK public cloud infrastructure market, which according to the regulator is worth $16.85B. Ofcom also plans to examine other digital markets over the next year, including messaging services such as Zoom (ZM), FaceTime and WhatsApp, as well as connected TVs and smart speakers. It could recommendation policy changes, take enforcement action or ask the competition regulator to investigate if it finds the cloud market not working well. A final report is expected within 12 months.
When Should You Buy Alphabet Inc. (NASDAQ:GOOGL)?
Today we're going to take a look at the well-established Alphabet Inc. ( NASDAQ:GOOGL ). The company's stock saw...
Google: Time To Buy (On My Terms)
Summary At current prices, Alphabet looks attractive, especially when looking at some of the recent moves by peers such as AMZN and AAPL. With decent option premiums, our way to trade the stock is to try and accumulate shares on pullbacks via puts. Today's trade locked in an attractive cost basis for us and should enable us to generate further option premiums through the sale of either puts or calls in the future. For those who read our articles regularly, today's trading update might come as a surprise. For someone who has spent the last six to nine months working down overweight positioning towards big-cap companies and tech names in various portfolios, we were forced to add tech and big-cap exposure today. So what happened? Well, for starters, quite a few of our energy names have performed well over the last few months. That outperformance in a sector we were simultaneously adding exposure to quickly filled up our weightings over the last quarter for energy, and our cash inflows and options premiums have been building up. Long story short, with a few option assignments, our cash positions building, and our refusal to utilize margin in any meaningful manner, our end-of-the-month rebalancing exercise indicated that we needed to add tech in a few portfolios once again. So Where Did We Look? Depending on which portfolios you look at, we are overweight certain names in each one when it comes to the big tech names. While Amazon.com, Inc. (AMZN) is a name we do not currently have on our buy list after its recent run-up, Alphabet Inc. (GOOGL) (GOOG) is still on our buy-list and has become an underweight holding across nearly every portfolio we manage. This is an anomaly to be sure, but has more to do with management's old thinking of not splitting the shares and our previous reliance on exchange-traded funds ("ETFs") to help gain Alphabet exposure (in $2,000 increments, it is harder to buy one share to add marginal exposure and instead easier to add low-cost ETFs to gain the necessary exposure). GOOGL data by YCharts Our readers know that we are generally bullish advertising and media companies, and like Meta Platforms (META), we think that Alphabet is a really solid way to get exposure to the digital ad market at reasonable valuations. Sure, there are names that we have been extremely bullish on before, such as The Trade Desk (TTD), that offer exposure as well, but some of these other names trade at really rich multiples and have a good bit of execution risk involved. With Apple's (AAPL) decisions weighing heavily on those reliant on data to target their ads, we think that Alphabet also offers us a way to diversify our risk among another player that is somewhat insulated via their own operating system, platform, and hardware devices. While it seems clear that Apple is going to steal a chunk of the ad pie from the current players, Alphabet appears well-positioned to continue to battle it out on iOS while also having the luxury of Android to fall back on. So How Did We Trade It? While we actually did purchase a few shares for long-term accounts (literally for minor custody accounts), who have the ability to hold these small positions for a decade or more, we were a little bit more risk averse in other accounts. We decided last night that we wanted to target the puts with a $103 strike price based off of the recent chart, as we thought there was some support there and we might find that buyers step in if the selloff over the last week or two continued. Well, the market was up at the open, so we shifted our focus to the puts with a strike price of $106 but saw nothing get done on those. At the end of the day, we chose to trade the September 16, 2022 puts with a strike price of $108/share which was pretty close to at-the-money, or ATM. This was certainly not what we envisioned last night or at the start of the trading day, but with the premium collected it is still somewhat of an out of the money trade. GOOGL data by YCharts We pocketed an option premium of $2.36/share, or $236 per contract. So if the shares are assigned to us, our cost basis would be $105.64/share, and if no action is taken and we pocket the premium, then we can buy the stock up to $110.36/share without having any opportunity cost. If the stock continues to move higher, we will have to revisit how we want to continue to trade this name, but for about 10 days of tying up capital, we locked in an option premium worth 2.19% that could pave the way to further trades around this block of shares if they are indeed assigned to us - and we truly like that optionality.
Google: More Room To Run
At 20 times earnings, Google is trading at a cheaper valuation than it did two years ago despite the stock doubling during this time. The operating margin is at an all-time high. $65 billion in free cash flow over the last 12 months will enable the company to continue to drive growth initiatives. Two years ago, I wrote about Google's (GOOG) (GOOGL) stock, Alphabet: A Proven Resilient Stock Selling At A Discount, and forecasted its shares doubling in five years. Two years later, the stock has done just that. Yet, even with already doubling its share price, Google's stock has more room to run. Below is a table contrasting the company's metrics in 2020 when the original article was written to my 5-year estimate at the time, and two years later to show how the stock has doubled in only two years: Alphabet Original (as of 3/27/20) 5-Year Estimate 2-Years Later (as of 12/31/21) Revenue (in millions) $161,857 $332,283 $257,637 Net Margin (%) 21.22% 19.55% 29.51% Net Income (in millions) $34,343 $64,961 $76,033 # Outstanding Shares 698,566,000 680,267,000 675,222,000 Net Income per Share $49.16 $95.49 $112.20 Price/Earnings (P/E) Ratio 22.58 27 20.4 Stock Price (pre-split) $1,110.26 $2,578.33 $2,289.80 Stock Price (post-split 20:1) $55.52 $128.92 $114.49 Source of company metrics: Morningstar & Alphabet Investor Relations Google Finance Today's Google In the company's latest quarterly report dated July 26th, they reported quarterly revenues increasing 13% from a year earlier, and 17% year-to-date. With the company's investments in R&D and other growth initiatives, such as AI, Search and Cloud, I believe Google can continue to grow in the high teens. In fact, the company added over 10,000 new hires in the last quarter showing how the company is thinking long term. These investments are reflected in their expenses rising 18% in the last quarter, which resulted in a decline in net income of 14%. However, the company still generated free cash flow of over $12 billion in the quarter and a total of $65 billion in the last 12 months. As a result, I am not concerned about the recent decline in earnings from the last quarter provided we continue to see reinvestments in their business units to drive growth. Another positive aspect is Google's operating margin. With an operating margin of 29%, the company continues to generate margins close to the all-time high reflecting their operational efficiency. I expect this margin to slightly decline from its high over time. Google Analysis Buy Rating: Using the same methodology from my analysis two years ago, I have a Buy rating for Alphabet's stock with a five-year target price of $240 per share. In my analysis, I believe the company can achieve a 25% net margin over the next 5 years, which is more moderate than the 29% it currently nets. With global online advertising estimated to reach $876 billion in 2026, according to Statista, Google has the opportunity to generate $368 billion in advertising revenue alone by continuing to capture 42% of the market. As of the end of 2021, Google generated $209 billion in total advertising revenue, which includes Search and YouTube. For the company to generate advertising revenues of $368 billion, it would have to grow 76% over the next five years, which is a 15% annual growth rate, and is less than the 18% I'm projecting in my analysis. For the remaining $129 billion in revenue that would come from Google's non-advertising segments and Google Cloud, these divisions would only have to continue to grow at its current rate of 35% annually to meet the total target revenue of $497 billion in five years. With the stock currently trading at 20 times earnings, it is trading at a reasonable valuation. I anticipate that the stock's price-to-earnings ratio (P/E) will expand from 20 to 25 over this time frame.
YouTube eyeing 'channel store' video market to offer other streamers - WSJ
YouTube (GOOG) (NASDAQ:GOOGL) is planning a platform where it would sell streaming video services from industry players, and it's engaged in discussions about how that would work, The Wall Street Journal reports. The company calls it a "channel store" where users might buy subscriptions to the likes of Netflix (NFLX), HBO (WBD) and Hulu (DIS) (CMCSA) through YouTube. That would bring the a la carte store more in line with what YouTube does with its YouTube TV live-television offering, which allows subscribers to pay to add on subscription services such as HBO Max (not unlike the old cable bundles). And it would bring YouTube in line with some key digital rivals acting as gatekeepers to peddling streaming services, notably Amazon Channels (NASDAQ:AMZN), Roku (NASDAQ:ROKU) and Apple TV (NASDAQ:AAPL). YouTube is discussing how a revenue split would work with its streaming partners, though terms could vary widely, according to the report. The company has been working on the "channel store" solution for at least 18 months, according to the report, and it could be ready as soon as the fall.
|GOOGL||US Interactive Media and Services||US Market|
Return vs Industry: GOOGL exceeded the US Interactive Media and Services industry which returned -43.4% over the past year.
Return vs Market: GOOGL underperformed the US Market which returned -23.7% over the past year.
|GOOGL Average Weekly Movement||5.2%|
|Interactive Media and Services Industry Average Movement||8.4%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.7%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: GOOGL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: GOOGL's weekly volatility (5%) has been stable over the past year.
About the Company
Alphabet Inc. provides various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment offers products and services, including ads, Android, Chrome, hardware, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube.
Alphabet Fundamentals Summary
|GOOGL fundamental statistics|
Is GOOGL overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|GOOGL income statement (TTM)|
|Cost of Revenue||US$120.31b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||5.52|
|Net Profit Margin||25.89%|
How did GOOGL perform over the long term?See historical performance and comparison
Is GOOGL undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 6/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for GOOGL?
Other financial metrics that can be useful for relative valuation.
|What is GOOGL's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does GOOGL's PE Ratio compare to its peers?
|GOOGL PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
META Meta Platforms
Price-To-Earnings vs Peers: GOOGL is good value based on its Price-To-Earnings Ratio (17.7x) compared to the peer average (40x).
Price to Earnings Ratio vs Industry
How does GOOGL's PE Ratio compare vs other companies in the US Interactive Media and Services Industry?
Price-To-Earnings vs Industry: GOOGL is good value based on its Price-To-Earnings Ratio (17.7x) compared to the US Interactive Media and Services industry average (22.4x)
Price to Earnings Ratio vs Fair Ratio
What is GOOGL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||17.7x|
|Fair PE Ratio||38.4x|
Price-To-Earnings vs Fair Ratio: GOOGL is good value based on its Price-To-Earnings Ratio (17.7x) compared to the estimated Fair Price-To-Earnings Ratio (38.4x).
Share Price vs Fair Value
What is the Fair Price of GOOGL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: GOOGL ($97.5) is trading below our estimate of fair value ($246.46)
Significantly Below Fair Value: GOOGL is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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How is Alphabet forecast to perform in the next 1 to 3 years based on estimates from 41 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GOOGL's forecast earnings growth (12.9% per year) is above the savings rate (1.9%).
Earnings vs Market: GOOGL's earnings (12.9% per year) are forecast to grow slower than the US market (14.7% per year).
High Growth Earnings: GOOGL's earnings are forecast to grow, but not significantly.
Revenue vs Market: GOOGL's revenue (11.4% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: GOOGL's revenue (11.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: GOOGL's Return on Equity is forecast to be high in 3 years time (28.8%)
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How has Alphabet performed over the past 5 years?
Past Performance Score3/6
Past Performance Score 3/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GOOGL has high quality earnings.
Growing Profit Margin: GOOGL's current net profit margins (25.9%) are lower than last year (28.6%).
Past Earnings Growth Analysis
Earnings Trend: GOOGL's earnings have grown significantly by 32% per year over the past 5 years.
Accelerating Growth: GOOGL's earnings growth over the past year (14.4%) is below its 5-year average (32% per year).
Earnings vs Industry: GOOGL earnings growth over the past year (14.4%) underperformed the Interactive Media and Services industry 18.6%.
Return on Equity
High ROE: GOOGL's Return on Equity (28.2%) is considered high.
Discover strong past performing companies
How is Alphabet's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: GOOGL's short term assets ($172.4B) exceed its short term liabilities ($61.4B).
Long Term Liabilities: GOOGL's short term assets ($172.4B) exceed its long term liabilities ($38.4B).
Debt to Equity History and Analysis
Debt Level: GOOGL has more cash than its total debt.
Reducing Debt: GOOGL's debt to equity ratio has increased from 2.3% to 5% over the past 5 years.
Debt Coverage: GOOGL's debt is well covered by operating cash flow (739.3%).
Interest Coverage: GOOGL earns more interest than it pays, so coverage of interest payments is not a concern.
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What is Alphabet current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Dividend Yield vs Market
|Alphabet Dividend Yield vs Market|
|Market Bottom 25% (US)||1.7%|
|Market Top 25% (US)||4.7%|
|Industry Average (Interactive Media and Services)||4.3%|
|Analyst forecast in 3 Years (Alphabet)||0%|
Notable Dividend: Unable to evaluate GOOGL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate GOOGL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if GOOGL's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if GOOGL's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as GOOGL has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Sundar Pichai (49 yo)
Mr. Sundar Pichai is Chief Executive Officer at Alphabet Inc. since December 2019. Mr. Pichai has been the Chief Executive Officer of Google Inc., since October 02, 2015. Mr. Pichai leads the product manag...
CEO Compensation Analysis
|Sundar Pichai's Compensation vs Alphabet Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$6m||US$2m|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$7m||US$2m|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||US$281m||US$650k|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||US$2m||US$650k|
|Sep 30 2018||n/a||n/a|
|Jun 30 2018||n/a||n/a|
|Mar 31 2018||n/a||n/a|
|Dec 31 2017||US$1m||US$650k|
|Sep 30 2017||n/a||n/a|
|Jun 30 2017||n/a||n/a|
|Mar 31 2017||n/a||n/a|
|Dec 31 2016||US$200m||US$650k|
|Sep 30 2016||n/a||n/a|
|Jun 30 2016||n/a||n/a|
|Mar 31 2016||n/a||n/a|
|Dec 31 2015||US$101m||US$653k|
Compensation vs Market: Sundar's total compensation ($USD6.32M) is below average for companies of similar size in the US market ($USD13.05M).
Compensation vs Earnings: Sundar's compensation has been consistent with company performance over the past year.
Experienced Management: GOOGL's management team is seasoned and experienced (5.8 years average tenure).
Experienced Board: GOOGL's board of directors are seasoned and experienced ( 16.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
|Owner Type||Number of Shares||Ownership Percentage|
|State or Government||5,064,320||0.04%|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Alphabet Inc.'s employee growth, exchange listings and data sources
- Name: Alphabet Inc.
- Ticker: GOOGL
- Exchange: NasdaqGS
- Founded: 1998
- Industry: Interactive Media and Services
- Sector: Media
- Implied Market Cap: US$1.275t
- Shares outstanding: 13.04b
- Website: https://www.abc.xyz
Number of Employees
- Alphabet Inc.
- 1600 Amphitheatre Parkway
- Mountain View
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|GOOGL||NasdaqGS (Nasdaq Global Select)||Yes||Class A Common Stock||US||USD||Aug 2004|
|ABEA||DB (Deutsche Boerse AG)||Yes||Class A Common Stock||DE||EUR||Aug 2004|
|GOOGL *||BMV (Bolsa Mexicana de Valores)||Yes||Class A Common Stock||MX||MXN||Aug 2004|
|GOOGL||SWX (SIX Swiss Exchange)||Yes||Class A Common Stock||CH||CHF||Aug 2004|
|ABEA||XTRA (XETRA Trading Platform)||Yes||Class A Common Stock||DE||EUR||Aug 2004|
|GOOGL||SNSE (Santiago Stock Exchange)||Yes||Class A Common Stock||CL||USD||Aug 2004|
|GOOGL||ETLX (Eurotlx)||Yes||Class A Common Stock||IT||EUR||Aug 2004|
|GOOA||WBAG (Wiener Boerse AG)||Yes||Class A Common Stock||AT||EUR||Aug 2004|
|0RIH||LSE (London Stock Exchange)||Yes||Class A Common Stock||GB||USD||Aug 2004|
|ABEA||BUL (Bulgaria Stock Exchange)||Yes||Class A Common Stock||BG||EUR||Aug 2004|
|GOOGLCL||SNSE (Santiago Stock Exchange)||Yes||Class A Common Stock||CL||CLP||Aug 2004|
|GOOGL||BASE (Buenos Aires Stock Exchange)||CEDEAR EA REP 1/29 COM(USD)||AR||ARS||Jan 2014|
|GOOG||NasdaqGS (Nasdaq Global Select)||Class C Capital Stock||US||USD||Mar 2014|
|ABEC||DB (Deutsche Boerse AG)||Class C Capital Stock||DE||EUR||Mar 2014|
|GOOG *||BMV (Bolsa Mexicana de Valores)||Class C Capital Stock||MX||MXN||Mar 2014|
|ABEC||XTRA (XETRA Trading Platform)||Class C Capital Stock||DE||EUR||Mar 2014|
|GOOG||SNSE (Santiago Stock Exchange)||Class C Capital Stock||CL||USD||Mar 2014|
|GOOC||WBAG (Wiener Boerse AG)||Class C Capital Stock||AT||EUR||Mar 2014|
|GOOG||BIT (Borsa Italiana)||Class C Capital Stock||IT||EUR||Mar 2014|
|0HD6||LSE (London Stock Exchange)||Class C Capital Stock||GB||USD||Mar 2014|
|GOOG||BVL (Bolsa de Valores de Lima)||Class C Capital Stock||PE||USD||Mar 2014|
|GOOGCL||SNSE (Santiago Stock Exchange)||Class C Capital Stock||CL||CLP||Mar 2014|
|ABEC||BUL (Bulgaria Stock Exchange)||Class C Capital Stock||BG||EUR||Mar 2014|
|GOGL34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 150 REP 1 COM||BR||BRL||May 2016|
|GOGL35||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 150 REP 1 COM||BR||BRL||May 2016|
|TCXGOG||CHIA (Chi-X Australia)||GDS (ALPHABET INC)||AU||AUD||Jul 2020|
|GOOG||NEOE (Aequitas Neo Exchange)||CDR ALPHABET INC REG S||CA||CAD||Aug 2021|
|ABE0||DB (Deutsche Boerse AG)||CDR ALPHABET INC REG S||DE||EUR||Aug 2021|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/27 00:00|
|End of Day Share Price||2022/09/27 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.