Alphabet (NASDAQ:GOOG) Trading 2.5% Higher - Still a Buy?

Key Points

• Alphabet shares rose 2.5% on Monday, trading as high as $370.65 as investors reacted positively to renewed optimism around the company’s AI expansion.
• The biggest catalysts were reports that Alphabet may work with Samsung on TPU chip manufacturing amid TSMC capacity constraints, plus talk that the company could raise capital to fund AI infrastructure and data center growth.
• Fundamentally, Alphabet remains strong: its latest quarter beat expectations with Q1 revenue up 21.8% year over year, and analysts remain broadly bullish with a consensus Buy rating and average price target of $376.78.

Alphabet Inc. (NASDAQ:GOOG - Get Free Report) traded up 2.5% during mid-day trading on Monday . The stock traded as high as $370.65 and last traded at $367.11. 17,103,232 shares were traded during trading, a decline of 19% from the average session volume of 21,233,650 shares. The stock had previously closed at $358.16.

Alphabet News Summary

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet is benefiting from renewed optimism around its AI buildout, including reports that it is exploring Samsung as a manufacturing partner for TPU chips as TSMC faces capacity constraints. That suggests strong demand for Alphabet’s AI hardware and could help it secure more chip supply for future AI and cloud growth. Google's Samsung Talks Highlight TSMC Capacity Crunch
• Positive Sentiment: Investors are also reacting to chatter that Alphabet is making a major capital raise to fund AI infrastructure, with commentary calling the move proactive for data center expansion. That supports the view that management is investing aggressively to stay competitive in AI search and cloud. Alphabet Stock (GOOG) Opinions on Capital Raise Amid AI Push
• Positive Sentiment: Alphabet’s latest earnings backdrop remains strong, with Q1 revenue up 21.8% year over year and results beating expectations. That gives investors more confidence that the company can fund heavy AI spending while still growing profits. Alphabet Stock (GOOG) Opinions on Capital Raise Amid AI Push
• Neutral Sentiment: Google also disclosed that a Chinese-linked hacking group targeted U.S. and Canadian research facilities for more than a year. While this underscores the importance of Alphabet’s security expertise, it does not appear to be a direct earnings driver for GOOG today. Chinese-linked hackers targeted U.S.,Canadian research facilities for a year, Google says
• Neutral Sentiment: Several articles highlighted Alphabet’s expanding AI footprint, including a new SpaceX compute rental relationship and broader enthusiasm around Gemini, quantum research, Waymo, and Wing. These reinforce the company’s optionality, but they are more narrative support than immediate catalysts. Google Is Paying $920 Million Per Month to SpaceX. Here's Why Nvidia Is the Quiet Winner Nobody's Talking About.
• Negative Sentiment: Some market commentary notes that big-name investors like Steve Eisman are rotating away from hyperscalers, which could weigh on sentiment for Alphabet even as the AI trade continues. This is more of a valuation/macro concern than a company-specific problem. 'Big Short' Investor Steve Eisman Is Hesitant About GOOGL, MSFT, But Bets On These Three Sectors

Analyst Ratings Changes

Several analysts recently issued reports on the stock. Wells Fargo & Company restated an "overweight" rating and set a $435.00 target price on shares of Alphabet in a research report on Tuesday, June 2nd. DZ Bank upgraded shares of Alphabet to a "strong-buy" rating in a research report on Monday, February 16th. TD Cowen boosted their target price on shares of Alphabet from $450.00 to $475.00 and gave the company a "buy" rating in a research report on Tuesday, June 9th. Freedom Capital downgraded shares of Alphabet from a "strong-buy" rating to a "hold" rating in a report on Monday, May 4th. Finally, Needham & Company LLC set a $400.00 price target on shares of Alphabet and gave the company a "buy" rating in a report on Friday, March 13th. Five equities research analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Buy" and a consensus price target of $376.78.

Alphabet Price Performance

The company has a quick ratio of 1.92, a current ratio of 1.92 and a debt-to-equity ratio of 0.16. The firm has a market cap of $4.45 trillion, a PE ratio of 28.00, a P/E/G ratio of 1.53 and a beta of 1.23. The firm's fifty day simple moving average is $357.71 and its two-hundred day simple moving average is $329.52.

Alphabet (NASDAQ:GOOG - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The information services provider reported $5.11 earnings per share for the quarter, beating the consensus estimate of $2.68 by $2.43. Alphabet had a net margin of 37.92% and a return on equity of 38.99%. The business had revenue of $109.90 billion for the quarter, compared to the consensus estimate of $106.96 billion. During the same quarter in the previous year, the firm earned $2.81 earnings per share. The company's revenue for the quarter was up 21.8% on a year-over-year basis. As a group, research analysts expect that Alphabet Inc. will post 14.3 EPS for the current year.

Alphabet Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Monday, June 8th will be issued a dividend of $0.22 per share. This is an increase from Alphabet's previous quarterly dividend of $0.21. This represents a $0.88 annualized dividend and a yield of 0.2%. The ex-dividend date of this dividend is Monday, June 8th. Alphabet's payout ratio is presently 6.71%.

Insider Buying and Selling at Alphabet

In other news, major shareholder 2019 Gp L.L.C. Gv sold 87,475 shares of the business's stock in a transaction on Friday, May 15th. The shares were sold at an average price of $23.75, for a total value of $2,077,531.25. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Sundar Pichai sold 32,500 shares of the business's stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $307.89, for a total transaction of $10,006,425.00. Following the completion of the transaction, the chief executive officer directly owned 1,642,060 shares in the company, valued at $505,573,853.40. This trade represents a 1.94% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 191,966 shares of company stock valued at $16,963,968. 12.99% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Alphabet

Several hedge funds have recently modified their holdings of GOOG. Imprint Wealth LLC purchased a new position in shares of Alphabet in the third quarter worth $31,000. Nvest Wealth Strategies Inc. purchased a new position in shares of Alphabet in the fourth quarter worth $38,000. Lifetime Wealth Management P.C. purchased a new position in shares of Alphabet in the fourth quarter worth $38,000. Bard Associates Inc. purchased a new position in shares of Alphabet in the fourth quarter worth $41,000. Finally, Towne Trust Company N.A lifted its holdings in shares of Alphabet by 34.0% in the fourth quarter. Towne Trust Company N.A now owns 134 shares of the information services provider's stock worth $42,000 after buying an additional 34 shares in the last quarter. Hedge funds and other institutional investors own 27.26% of the company's stock.

Alphabet Company Profile

Alphabet Inc NASDAQ: GOOG is a multinational technology holding company headquartered in Mountain View, California. Formed in 2015 through a corporate restructuring of Google, Alphabet serves as the parent to Google LLC and a portfolio of businesses collectively known as "Other Bets." Google was originally founded in 1998 by Larry Page and Sergey Brin; Alphabet is led by CEO Sundar Pichai, who oversees Google and the broader company while the founders remain prominent shareholders and influential figures in the company's history.

Alphabet's core business centers on internet search and advertising, with Google Search and the company's ad platforms (including Google Ads and AdSense) generating the majority of revenue by connecting advertisers with consumers worldwide.

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