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Alphabet Inc Class C GOOG

Morningstar Rating
$168.68 −0.48 (0.28%)
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Company Report

Alphabet Earnings: Search and Cloud Growth Remain Impressive

Solid ad revenue growth during the second quarter contradicts the notion that Alphabet is losing its footing in the search business. Also, growth in the Google Cloud business accelerated again, reaching the fastest pace in 18 months as AI tools augment broader cloud adoption. After adjusting our model, we have modestly increased our fair value estimate to $182 from $179.

Price vs Fair Value

GOOG is trading at a 44% premium.
Price
$168.68
Fair Value
$711.00
Uncertainty
High
1-Star Price
$391.30
5-Star Price
$143.50
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
$169.16
Day Range
$165.87169.84
52-Week Range
$121.46193.31
Bid/Ask
$168.62 / $168.68
Market Cap
$2.08 Tril
Volume/Avg
25.2 Mil / 18.7 Mil

Key Statistics

Price/Earnings (Normalized)
24.36
Price/Sales
6.46
Dividend Yield (Trailing)
0.12%
Dividend Yield (Forward)
0.47%
Total Yield
3.19%

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 Growth
Total Number of Employees
179,582

Competitors

Valuation

Metric
GOOG
AAPL
AMZN
Price/Earnings (Normalized)
24.3633.9250.41
Price/Book Value
6.9145.098.76
Price/Sales
6.468.933.27
Price/Cash Flow
17.5428.2718.16
Price/Earnings
GOOG
AAPL
AMZN

Financial Strength

Metric
GOOG
AAPL
AMZN
Quick Ratio
1.900.870.83
Current Ratio
2.081.041.07
Interest Coverage
281.7715.35
Quick Ratio
GOOG
AAPL
AMZN

Profitability

Metric
GOOG
AAPL
AMZN
Return on Assets (Normalized)
26.65%32.12%11.69%
Return on Equity (Normalized)
37.68%165.09%31.44%
Return on Invested Capital (Normalized)
33.14%62.77%17.95%
Return on Assets
GOOG
AAPL
AMZN
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Internet Content & Information Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Alphabet Inc Class A
GOOGL
CkqvwsfsjJkrm$2.1 Tril
Meta Platforms Inc Class A
META
XzgkbzbxmpJvmf$1.2 Tril
Tencent Holdings Ltd ADR
TCEHY
VqqrtymqYfv$419.0 Bil
Spotify Technology SA
SPOT
NdnxlfzLlgz$64.6 Bil
DoorDash Inc Ordinary Shares - Class A
DASH
KgmfrkvfWxjdv$42.8 Bil
Baidu Inc ADR
BIDU
KpqwnysVtlv$30.8 Bil
Pinterest Inc Class A
PINS
SrcntnqpQmmvrty$25.7 Bil
Tencent Music Entertainment Group ADR
TME
YghgyzxjYmtvtx$24.3 Bil
Snap Inc Class A
SNAP
NmzrchwwCjns$21.9 Bil

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