The Analyst Verdict: Alphabet In The Eyes Of 4 Experts

Analysts' ratings for Alphabet GOOG over the last quarter vary from bullish to bearish, as provided by 4 analysts.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $207.5, with a high estimate of $220.00 and a low estimate of $185.00. This upward trend is evident, with the current average reflecting a 1.22% increase from the previous average price target of $205.00.

Analyzing Analyst Ratings: A Detailed Breakdown

The standing of Alphabet among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Alphabet. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Alphabet compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Alphabet's stock. This examination reveals shifts in analysts' expectations over time.

For valuable insights into Alphabet's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Alphabet analyst ratings.

Unveiling the Story Behind Alphabet

Alphabet is a holding company that wholly owns internet giant Google. The California-based company derives slightly less than 90% of its revenue from Google services, the vast majority of which is advertising sales. Alongside online ads, Google services houses sales stemming from Google's subscription services (YouTube TV, YouTube Music among others), platforms (sales and in-app purchases on Play Store), and devices (Chromebooks, Pixel smartphones, and smart home products such as Chromecast). Google's cloud computing platform, or GCP, accounts for roughly 10% of Alphabet's revenue with the firm's investments in up-and-coming technologies such as self-driving cars (Waymo), health (Verily), and internet access (Google Fiber) making up the rest.

Alphabet: Delving into Financials

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Positive Revenue Trend: Examining Alphabet's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 13.59% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Communication Services sector.

Net Margin: Alphabet's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 27.87% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Alphabet's ROE excels beyond industry benchmarks, reaching 7.96%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Alphabet's ROA excels beyond industry benchmarks, reaching 5.75%. This signifies efficient management of assets and strong financial health.

Debt Management: Alphabet's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.09.

Analyst Ratings: Simplified

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.