Alphabet Inc. (GOOGL): What is the Risk Factor?

Alphabet Inc. (NASDAQ:GOOGL) saw a downside of -1.77% to close Tuesday at $2728.98 after subtracting -$49.3 on the day. The 5-day average trading volume is 1,302,820 shares of the company’s common stock. It has gained $2,814.24 in the past week. An average of 1,583,975 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 1,280,106.

GOOGL’s 1-month performance is -4.13% or -$88.54 on its low of $2,621.00 reached on 10/04/21. The company’s shares have touched a 52-week low of $1508.48 and high of $2925.07, with the stock’s rally to the 52-week high happening on 09/01/21. YTD, GOOGL has achieved 55.71% or $976.34. However, the current price is down -6.70%% from the 52-week high price.

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Valuation Metrics

The company’s PE ratio for the last five years has touched a high of 66.12 and a low of 21.43. GOOGL stock has a beta of 1.03. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 8.23 while the price-to-book (PB) in the most recent quarter is 7.68, with the price to cash flow ratio at 30.96.

Alphabet Inc.’s quick ratio for the period ended June 29 was 3.10, with the current ratio over the same period at 3.20 meaning that GOOGL stock is able to fulfill its debt obligations. As well, the company’s long term debt to equity for the quarter ending June 29 was 0.06, while the total debt to equity was 0.06. In terms of profitability, the gross margin trailing 12 months is 55.70%. The trailing 12-month EBITDA margin is 30.02% while for the period ending June 29; Alphabet Inc.’s operating margin was 28.40%. The firm’s gross profit as reported stood at $97.8 billion against revenue of $182.53 billion.

Earnings Surprise

For the quarterly period ending June 29 this year, Alphabet Inc.’s cash and short-term investments amounted to $110.23 billion against total debt of $28.1 billion. Net income and sales went up compared to those figures reported in the previous quarter. Analysts expected GOOGL to announce $19.34 per share in earnings in its latest quarter, but it posted $27.26, representing a 41.00% surprise. EBITDA for the quarter stood at more than $22.31 billion. GOOGL stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 97.82 billion, with total debt at $28.1 billion. Shareholders hold equity totaling $666.75 million

Technical Picture

Let’s look briefly at Alphabet Inc. (GOOGL) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 12 October was 43.35% to suggest the stock is trending Neutral, with historical volatility in this time period at 22.77%.

The stock’s 5-day moving average is $2,767.75, reflecting a +0.31% or $8.52 change from its current price. GOOGL is currently trading -4.28% above its 20-day SMA, +18.29% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 and SMA200 by +1.18% and +57.37% respectively.

Stochastic %K and %D was 65.01% and 68.57% and the average true range (ATR) pointed at 56.11. The RSI (14) points at 44.91%, while the 14-day stochastic is at 47.86% with the period’s ATR at 53.74. The stock’s 9-day MACD Oscillator is pointing at 30.23 and 15.48 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Alphabet Inc. (NASDAQ: GOOGL), Jefferies reiterated its a Hold rating for the company but lifted their price target by $3150 to $3325. Analysts offering their rating for GOOGL stock have a consensus rating for the stock as Buy. Currently, 1 brokerage advisors rate GOOGL as a “sell,”, while 2 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 6 rates the stock as overweight while 38 have offered a “buy” rating.

What is GOOGL’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $2520.00 and a high of $3600.00, with their median price target at $3200.00. Looking at these predictions, the average price target given by analysts is for Alphabet Inc. (GOOGL) stock is $3194.20.


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