Alphabet Inc. $GOOG Holdings Cut by Parker Investment Management LLC

Key Points

• Parker Investment Management LLC cut its Alphabet holdings by 44% in the first quarter, selling 162,122 shares and leaving it with 206,556 shares valued at about $59.3 million.
• Alphabet’s latest quarter was much stronger than expected, with EPS of $9.11 versus $2.87 estimated and revenue of $119.8 billion, up 24.2% year over year.
• Despite the earnings beat, investors remain focused on heavy AI-related spending, as higher capex guidance and negative free cash flow sparked concern, even as analysts largely kept a bullish stance with a consensus rating of Buy.

Parker Investment Management LLC decreased its holdings in Alphabet Inc. (NASDAQ:GOOG - Free Report) by 44.0% in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 206,556 shares of the information services provider's stock after selling 162,122 shares during the period. Alphabet comprises approximately 9.0% of Parker Investment Management LLC's investment portfolio, making the stock its 4th biggest holding. Parker Investment Management LLC's holdings in Alphabet were worth $59,253,000 as of its most recent SEC filing.

A number of other hedge funds also recently bought and sold shares of the stock. Brighton Jones LLC lifted its stake in shares of Alphabet by 5.6% during the 4th quarter. Brighton Jones LLC now owns 120,253 shares of the information services provider's stock worth $22,901,000 after purchasing an additional 6,410 shares during the last quarter. Worldquant Millennium Advisors LLC grew its stake in Alphabet by 76.2% in the second quarter. Worldquant Millennium Advisors LLC now owns 1,865,304 shares of the information services provider's stock valued at $330,886,000 after purchasing an additional 806,681 shares during the last quarter. Darwin Wealth Management LLC purchased a new position in Alphabet in the second quarter valued at about $658,000. Financial Advisors Network Inc. raised its holdings in Alphabet by 7.7% in the second quarter. Financial Advisors Network Inc. now owns 7,945 shares of the information services provider's stock worth $1,409,000 after purchasing an additional 565 shares in the last quarter. Finally, Ausdal Financial Partners Inc. raised its holdings in Alphabet by 10.7% in the second quarter. Ausdal Financial Partners Inc. now owns 37,310 shares of the information services provider's stock worth $6,618,000 after purchasing an additional 3,616 shares in the last quarter. Hedge funds and other institutional investors own 27.26% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the stock. Piper Sandler restated an "overweight" rating and issued a $395.00 price target (down from $445.00) on shares of Alphabet in a report on Thursday. Cantor Fitzgerald reiterated an "overweight" rating and set a $420.00 price objective (down from $435.00) on shares of Alphabet in a research note on Thursday. Freedom Capital upgraded shares of Alphabet from a "hold" rating to a "strong-buy" rating in a research note on Thursday. UBS Group reaffirmed a "neutral" rating and issued a $379.00 price target (down from $400.00) on shares of Alphabet in a report on Thursday. Finally, Morgan Stanley lowered their price objective on Alphabet from $415.00 to $400.00 and set an "overweight" rating for the company in a research report on Thursday. Six equities research analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, Alphabet presently has a consensus rating of "Buy" and a consensus target price of $410.09.

Key Stories Impacting Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet posted a strong Q2 beat, with revenue and EPS coming in ahead of expectations, while Google Cloud revenue surged 82% and cloud margins improved sharply.
• Positive Sentiment: AI and product demand remain strong, with management saying AI usage is rising across Search, Cloud, and Gemini, supporting the long-term growth story.
• Positive Sentiment: Several analysts reiterated bullish views or raised targets, and multiple commentary pieces argued the stock looks attractive after the pullback.
• Positive Sentiment: Verizon signed a deal worth more than $1 billion with Google for dark fiber connectivity, adding another sign of infrastructure demand tied to Alphabet’s data-center buildout. Article Title
• Neutral Sentiment: Waymo is reportedly considering ending its Uber partnership, which could affect how quickly Alphabet’s robotaxi business scales, but the direct financial impact is still unclear. Article Title
• Neutral Sentiment: Alphabet also disclosed a large SpaceX stake and saw some institutional holders trim positions, but these items are secondary to the main debate over AI spending and cash flow.
• Negative Sentiment: Investors were unnerved by Alphabet’s higher CapEx guidance and negative free cash flow, which raised concerns that AI spending may be outpacing near-term returns.
• Negative Sentiment: Alphabet was also hit by an EU antitrust fine of about $1 billion, adding another regulatory overhang. Article Title
• Negative Sentiment: Moody’s warned that the industry-wide AI buildout could threaten credit quality at Alphabet and other hyperscalers, reinforcing concerns about balance-sheet strain from heavy infrastructure investment. Article Title

Alphabet Stock Up 0.2%

Alphabet stock opened at $319.09 on Friday. The business's 50-day moving average price is $360.63 and its 200 day moving average price is $337.38. The company has a quick ratio of 1.92, a current ratio of 2.72 and a debt-to-equity ratio of 0.16. The firm has a market cap of $3.87 trillion, a price-to-earnings ratio of 16.03, a price-to-earnings-growth ratio of 1.31 and a beta of 1.23. Alphabet Inc. has a 52 week low of $188.70 and a 52 week high of $404.47.

Alphabet (NASDAQ:GOOG - Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The information services provider reported $9.11 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 period in the previous year, the company posted $2.31 earnings per share. Alphabet's revenue for the quarter was up 24.2% on a year-over-year basis. As a group, sell-side analysts anticipate that Alphabet Inc. will post 17.25 earnings per share for the current year.

Alphabet Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, September 14th. Stockholders of record on Monday, September 7th will be issued a dividend of $0.22 per share. This represents a $0.88 annualized dividend and a dividend yield of 0.3%. The ex-dividend date of this dividend is Friday, September 4th. Alphabet's payout ratio is 4.42%.

Insider Transactions at Alphabet

In other Alphabet news, CAO Marsida Saraci sold 449 shares of the company's stock in a transaction dated Friday, June 26th. The shares were sold at an average price of $341.72, for a total value of $153,432.28. Following the completion of the transaction, the chief accounting officer owned 27,348 shares in the company, valued at approximately $9,345,358.56. This represents a 1.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider John Kent Walker sold 8,998 shares of the company's stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $349.29, for a total value of $3,142,911.42. Following the completion of the transaction, the insider directly owned 75,290 shares of the company's stock, valued at $26,298,044.10. The trade was a 10.68% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 159,415 shares of company stock worth $7,672,279. Insiders own 12.99% of the company's stock.

About Alphabet

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.