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Alphabet Inc Class C GOOG

Morningstar Rating
$156.33 −2.86 (1.80%)
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Company Report

We Don't Expect Alphabet's Recent Missteps Will Derail Its Long-Term Potential

Alphabet dominates the online search market with 90%-plus global share (80%-plus US share) for Google, and the business generates very strong cash flow. We expect continuing search growth as we remain confident that Google will maintain its leadership despite Microsoft's move to include generative artificial intelligence in Bing and Google's recent AI missteps. We also foresee YouTube and cloud contributing more to the firm’s top and bottom lines.

Price vs Fair Value

GOOG is trading within a range we consider fairly valued.
Price
$156.34
Fair Value
$119.00
Uncertainty
High
1-Star Price
$127.63
5-Star Price
$436.90
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

As the number of online users and usage increase, so will digital ad spending, of which Google will remain one of the main beneficiaries.

Bears

There is little revenue diversification within Alphabet, as it remains heavily dependent on Google and search advertising.

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News

Trading Information

Previous Close Price
$159.19
Day Range
$156.15160.83
52-Week Range
$103.27161.70
Bid/Ask
$155.79 / $156.07
Market Cap
$1.94 Tril
Volume/Avg
21.1 Mil / 22.8 Mil

Key Statistics

Price/Earnings (Normalized)
26.85
Price/Sales
6.54
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
3.16%

Company Profile

Alphabet is a holding company. Internet media giant Google is a wholly owned subsidiary. Google services account for nearly 90% of Alphabet's revenue, of which more than 85% is from online ads. Other Google services revenue is from sales of apps and content on Google Play and YouTube, as well as sales of hardware such as Chromebooks, the Pixel smartphone, and smart home products, which include Nest and Google Home. Google's cloud computing offerings account for a bit more than 10% of total Alphabet revenue. Alphabet’s moonshot investments are in its other bets segment, where it bets on technology to enhance health (Verily), provide faster internet access (Google Fiber), enable self-driving cars (Waymo), and more.
Sector
Communication Services
Industry
Internet Content & Information
Stock Style Box
Large Core
Total Number of Employees
182,502

Competitors

Valuation

Metric
GOOG
SNAP
META
Price/Earnings (Normalized)
26.85114.4932.41
Price/Book Value
6.957.428.69
Price/Sales
6.543.8110.13
Price/Cash Flow
19.0595.6720.31
Price/Earnings
GOOG
SNAP
META

Financial Strength

Metric
GOOG
SNAP
META
Quick Ratio
1.944.252.55
Current Ratio
2.104.392.67
Interest Coverage
266.75−65.42103.67
Quick Ratio
GOOG
SNAP
META

Profitability

Metric
GOOG
SNAP
META
Return on Assets (Normalized)
24.48%1.83%25.74%
Return on Equity (Normalized)
35.00%5.73%38.69%
Return on Invested Capital (Normalized)
30.54%0.42%30.60%
Return on Assets
GOOG
SNAP
META
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Internet Content & Information Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
GOOGL
Alphabet Inc Class ANlhczfrkyWczl$1.9 Tril
META
Meta Platforms Inc Class AJmmqpmnhgKgpf$1.3 Tril
TCEHY
Tencent Holdings Ltd ADRYnkfvsgzJlg$365.8 Bil
SPOT
Spotify Technology SACtchdqvGnc$57.6 Bil
DASH
DoorDash Inc Ordinary Shares - Class AMydftwjknDzzvdhc$53.7 Bil
BIDU
Baidu Inc ADRQyscnyfhCvbf$35.9 Bil
PINS
Pinterest Inc Class AQzmktntskRjjnpj$22.2 Bil
TME
Tencent Music Entertainment Group ADRJsvnzbwwTdbqdv$19.8 Bil
SNAP
Snap Inc Class AHqppqnhqvLtx$17.1 Bil

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