Alphabet Stock Earnings Estimates Raised by Erste Group Bank

Key Points

• Erste Group Bank raised Alphabet’s FY2027 EPS estimate to $15.18 from $15.01, while analysts maintain a consensus “Buy” rating and a $421.85 average price target.
• Alphabet shares opened at $320.76, down 3.1%, despite strong recent results: quarterly EPS of $9.11 exceeded estimates and revenue rose 24.2% year over year to $119.80 billion.
• Institutional investors continue to hold significant positions, owning 27.26% of the stock, while recent news highlights potential AI and Google Cloud growth alongside concerns about heavy capital spending, litigation and regulatory pressure.

Alphabet Inc. (NASDAQ:GOOG - Free Report) - Analysts at Erste Group Bank raised their FY2027 earnings per share (EPS) estimates for shares of Alphabet in a research report issued on Wednesday, October 21st. Erste Group Bank analyst H. Engel now forecasts that the information services provider will earn $15.18 per share for the year, up from their prior estimate of $15.01. The consensus estimate for Alphabet's current full-year earnings is $20.60 per share.

GOOG has been the topic of a number of other research reports. UBS Group reaffirmed a "neutral" rating and set a $380.00 price objective (up from $379.00) on shares of Alphabet in a research note on Wednesday, October 14th. Arete Research boosted their target price on shares of Alphabet from $425.00 to $450.00 in a research note on Monday, July 6th. Cantor Fitzgerald restated an "overweight" rating and issued a $420.00 target price (down from $435.00) on shares of Alphabet in a report on Thursday, July 23rd. Weiss Ratings restated a "buy (b)" rating on shares of Alphabet in a report on Thursday, October 15th. Finally, Roth Capital raised their price target on shares of Alphabet from $435.00 to $440.00 and gave the stock a "buy" rating in a research note on Thursday, July 23rd. Six analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, Alphabet currently has a consensus rating of "Buy" and a consensus price target of $421.85.

Alphabet Stock Down 3.1%

Shares of NASDAQ:GOOG opened at $320.76 on Friday. The company has a quick ratio of 2.64, a current ratio of 2.72 and a debt-to-equity ratio of 0.16. Alphabet has a 52-week low of $252.77 and a 52-week high of $404.47. The stock's fifty day simple moving average is $339.94 and its 200-day simple moving average is $350.44. The company has a market capitalization of $3.92 trillion, a P/E ratio of 16.11, a P/E/G ratio of 0.95 and a beta of 1.19.

Alphabet (NASDAQ:GOOG - Get Free Report) last released its quarterly earnings results on Thursday, July 23rd. The information services provider reported $9.11 earnings per share for the quarter, topping the consensus estimate of $2.87 by $6.24. Alphabet had a return on equity of 51.32% and a net margin of 54.77%. The company had revenue of $119.80 billion during the quarter, compared to the consensus estimate of $116.53 billion. During the same quarter last year, the business posted $2.31 earnings per share. Alphabet's revenue was up 24.2% compared to the same quarter last year.

Institutional Trading of Alphabet

Several hedge funds and other institutional investors have recently added to or reduced their stakes in GOOG. Readystate Asset Management LP purchased a new stake in Alphabet in the second quarter valued at approximately $45,352,000. Arrowstreet Capital Limited Partnership increased its position in Alphabet by 76.1% during the first quarter. Arrowstreet Capital Limited Partnership now owns 14,581,870 shares of the information services provider's stock worth $4,182,952,000 after purchasing an additional 6,300,900 shares during the last quarter. State Street Corp increased its position in Alphabet by 2.8% during the second quarter. State Street Corp now owns 190,923,442 shares of the information services provider's stock worth $67,458,980,000 after purchasing an additional 5,208,690 shares during the last quarter. BlackRock Inc. raised its stake in Alphabet by 1.4% during the second quarter. BlackRock Inc. now owns 369,922,502 shares of the information services provider's stock worth $130,704,718,000 after purchasing an additional 5,164,200 shares during the period. Finally, Amundi raised its stake in Alphabet by 22.9% during the first quarter. Amundi now owns 21,922,379 shares of the information services provider's stock worth $6,288,654,000 after purchasing an additional 4,083,758 shares during the period. Hedge funds and other institutional investors own 27.26% of the company's stock.

Insiders Place Their Bets

In related news, Director Frances Arnold sold 83 shares of the company's stock in a transaction on Wednesday, September 30th. The stock was sold at an average price of $340.45, for a total value of $28,257.35. Following the completion of the transaction, the director directly owned 19,076 shares in the company, valued at approximately $6,494,424.20. This represents a 0.43% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, major shareholder 2019 Gp L.L.C. Gv sold 196,931 shares of the company's stock in a transaction on Monday, July 27th. The shares were sold at an average price of $19.46, for a total value of $3,832,277.26. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 315,765 shares of company stock valued at $6,297,980 in the last quarter. 12.99% of the stock is currently owned by company insiders.

Alphabet News Roundup

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: OpenAI cloud agreement: OpenAI plans to make its latest models and Codex coding agent available through Google Cloud, creating a potentially meaningful enterprise-cloud revenue opportunity and strengthening Google Cloud’s position beyond its rivalry with Microsoft. OpenAI to sell its top models on Google Cloud
• Positive Sentiment: AI infrastructure upside: Analysts see Google’s internally developed AI chips potentially becoming a multibillion-dollar business and a competitive alternative to Nvidia hardware. Google also reported a major quantum-computing error-reduction breakthrough, although commercial benefits remain longer term. Google’s AI chip could become a $75 billion business
• Positive Sentiment: Bullish fundamental case: Recent commentary highlights strong Google Cloud growth, AI-driven demand and potential upside relative to peers Microsoft and Amazon. Alphabet’s prior quarter also showed revenue growth of 24.2% and an earnings beat, supporting investor focus on the upcoming results. Alphabet versus Microsoft and Amazon
• Neutral Sentiment: AI strategy remains in development: CEO Sundar Pichai said Google is still in the early stages of recursively self-improving AI, suggesting substantial long-term potential but also indicating that monetization and competitive outcomes remain uncertain. Sundar Pichai on self-improving AI
• Negative Sentiment: Gemini concerns and litigation: Reports alleging delays in Gemini 3.5 Pro’s development and launch timeline triggered a significant prior selloff. Multiple law firms are promoting securities-fraud lawsuits alleging investors were misled; lead-plaintiff deadlines are November 30 or December 1, depending on the case. The legal claims are allegations, not established findings. Google investor alert and securities class action
• Negative Sentiment: Heavy capital spending: A reported $11 billion annual compute arrangement with SpaceX and broader AI infrastructure investments are raising concerns about cash flow, margins and returns on capital. Investors are also sensitive to Google Cloud reportedly giving up near-term revenue to reserve AI capacity. Google’s SpaceX compute deal
• Negative Sentiment: Valuation and regulatory pressure: Citizens JMP reduced its Google price target by 12%, while regulators are questioning a cloud outage affecting banks and lawmakers are scrutinizing Google’s AI use in schools. Environmental criticism over data-center construction adds reputational risk. Bank cuts Google stock price target

About Alphabet

Alphabet Inc is a technology holding company best known as the parent organization of Google. Founded in 2015 through a corporate restructuring, Alphabet oversees Google and a collection of businesses focused on technology, online services, communications, artificial intelligence, and other emerging areas.

Google's principal products and services include its internet search engine, digital advertising platforms, YouTube, Android, Chrome, Google Maps, Google Play, and Google Workspace. The company also provides cloud computing, data storage, cybersecurity, productivity, and artificial intelligence services through Google Cloud.

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