Where Alphabet Stands With Analysts

Alphabet GOOGL has been analyzed by 20 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Analysts have recently evaluated Alphabet and provided 12-month price targets. The average target is $214.45, accompanied by a high estimate of $230.00 and a low estimate of $190.00. Surpassing the previous average price target of $212.05, the current average has increased by 1.13%.

Exploring Analyst Ratings: An In-Depth Overview

The perception of Alphabet by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Alphabet. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, 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 Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: Alphabet displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 11.77%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower 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 27.51% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Alphabet's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 8.3%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Alphabet's ROA stands out, surpassing industry averages. With an impressive ROA of 6.03%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Alphabet's debt-to-equity ratio is below the industry average at 0.08, reflecting a lower dependency on debt financing and a more conservative financial approach.

What Are Analyst Ratings?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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