Founded in 1998, Alphabet Inc. (GOOGL) is a global leader in technology and innovation. It is best known as Google’s parent company and is headquartered in Mountain View, California. With a market cap of $2.1 trillion, Alphabet operates across various sectors, including online search, advertising, cloud computing, and artificial intelligence.
Shares of Alphabet have outperformed the broader market over the past year. The stock has gained 37.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 36.9%. In 2024 alone, GOOGL is up 22.5% compared to SPX’s 19.6% rise on a YTD basis.
Narrowing the focus, GOOGL’s outperformance is also evident compared to the Invesco NASDAQ Internet ETF (PNQI). The exchange-traded fund has gained 20.4% on a YTD basis.
GOOGL stock rose 5% in extended trading after its strong fiscal Q3 performance on Oct. 29. This was driven by growth in search ad revenue and a 35% increase in its cloud division, showcasing successful AI integration. The company surpassed Wall Street estimates on both EPS and revenue.
For the current fiscal year, ending in December, analysts expect Alphabet’s EPS to grow 36.4% year over year to $7.91 on a diluted basis. The company's earnings surprise history is robust. It beat the consensus estimate in all four quarters.
Among the 47 analysts covering GOOGL stock, the consensus rating is a “Strong Buy.” That’s based on 37 “Strong Buy” ratings, three “Moderate Buys,” and seven “Holds.”
This configuration is more bullish than a month ago, with 34 analysts suggesting a “Strong Buy.”
On Oct. 29, Mark Kelley from Stifel Nicolaus maintained a “Buy” rating on GOOGL, with a price target of $200, implying a potential upside of 16.9% from current levels.
The mean price target is 203.47, representing a premium of 18.9% compared to GOOGL’s current price levels. The Street-high price target of $235 suggests an upside potential of 37.3%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
