Alphabet Inc. $GOOG Stock: Motley Fool Asset Management LLC Trims Stake

Key Points

• Motley Fool Asset Management reduced its Alphabet stake by 4.6% in the third quarter, selling 27,201 shares. It still held 567,032 shares worth approximately $193.2 million, representing 7.3% of the firm’s portfolio.
• Analysts remain broadly bullish, with Alphabet receiving a “Moderate Buy” consensus rating and an average price target of $413.54, despite recent target adjustments.
• Alphabet’s quarterly revenue rose 24.7% year over year to $127.58 billion, but EPS of $2.12 missed expectations. Strong Google Cloud and AI demand were offset by concerns over heavy AI spending, negative free cash flow, and weaker-than-expected search monetization.

Motley Fool Asset Management LLC cut its holdings in Alphabet Inc. (NASDAQ:GOOG - Free Report) by 4.6% in the 3rd quarter, according to its most recent 13F filing with the SEC. The firm owned 567,032 shares of the information services provider's stock after selling 27,201 shares during the period. Alphabet comprises approximately 7.3% of Motley Fool Asset Management LLC's holdings, making the stock its 2nd biggest position. Motley Fool Asset Management LLC's holdings in Alphabet were worth $193,210,000 as of its most recent SEC filing.

A number of other institutional investors have also modified their holdings of the business. Morton Brown Family Wealth LLC raised its position in shares of Alphabet by 135.5% during the 3rd quarter. Morton Brown Family Wealth LLC now owns 73 shares of the information services provider's stock worth $25,000 after purchasing an additional 42 shares during the period. Castlekeep Investment Advisors LLC acquired a new position in Alphabet during the 2nd quarter valued at about $29,000. Toth Financial Advisory Corp bought a new position in Alphabet in the 2nd quarter worth about $41,000. Timbuktu Capital Management LLC bought a new position in Alphabet in the 2nd quarter worth about $46,000. Finally, Robinswood Financial LLC bought a new position in Alphabet in the 1st quarter worth about $57,000. Institutional investors own 27.26% of the company's stock.

Insider Buying and Selling at Alphabet

In other news, Director Frances Arnold sold 83 shares of the stock in a transaction that occurred on Wednesday, September 30th. The shares were 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 $6,494,424.20. This trade represents a 0.43% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Over the last ninety days, insiders have sold 247 shares of company stock valued at $79,238. Corporate insiders own 12.99% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts have commented on the stock. HSBC set a $515.00 price target on shares of Alphabet in a research note on Friday, August 14th. Morgan Stanley reiterated an "overweight" rating and set a $375.00 price objective on shares of Alphabet in a research report on Thursday. BMO Capital Markets set a $425.00 price objective on Alphabet in a report on Thursday. Tigress Financial raised their target price on Alphabet from $415.00 to $485.00 and gave the company a "strong-buy" rating in a research report on Friday, September 18th. Finally, Wedbush initiated coverage on Alphabet in a research note on Thursday, July 16th. They set an "outperform" rating and a $445.00 target price on the stock. Six research analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $413.54.

Key Headlines Impacting Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Google Cloud delivered exceptional growth. Revenue more than doubled year over year to approximately $30.7 billion, while operating margins expanded and the backlog reached roughly $561 billion. This supports the view that Alphabet’s AI investments are generating demand. Alphabet Cloud Business Article
• Positive Sentiment: Alphabet’s AI platform may create new revenue streams. OpenAI reportedly plans to use Google’s tensor-processing units, while Gemini performance and expanding AI Search advertising could help Alphabet compete in the AI infrastructure market. Analysts including Goldman Sachs and JPMorgan remain constructive, despite lowering price targets. OpenAI Google AI Chips Article
• Positive Sentiment: Valuation has become more attractive. Reports place GOOG’s price-to-earnings ratio near 14.6, the lowest level in many years, prompting some investors to characterize the selloff as a potential long-term buying opportunity. Google Valuation Article
• Neutral Sentiment: Waymo is expanding internationally. Alphabet’s autonomous-driving unit will test Toyota bZ4X robotaxis in Japan and the U.K., but the business remains small and cash-burning. Waymo Toyota Partnership Article
• Negative Sentiment: Quarterly results missed expectations. Alphabet reported approximately $2.12 in earnings per share and $127.6 billion in revenue, below consensus forecasts. Search revenue grew but missed estimates, and AI-powered searches are reportedly harder to monetize than traditional searches. Alphabet Search Earnings Article
• Negative Sentiment: AI spending is straining cash flow. Capital expenditures and infrastructure commitments pushed free cash flow approximately $9 billion negative for the quarter, raising concerns about returns on Alphabet’s enormous AI investment program and potential financing or dilution. Tech Giants AI Spending Article
• Negative Sentiment: Additional earnings pressure came from investments and legal risk. An unrealized loss on Alphabet’s SpaceX stake reduced earnings, while multiple law firms publicized securities class-action deadlines tied to alleged AI disclosures. These lawsuits are largely investor notices, but they add reputational and headline risk. Alphabet Class Action Notice

Alphabet Stock Performance

GOOG stock opened at $278.22 on Friday. The company has a 50-day simple moving average of $335.73 and a 200 day simple moving average of $338.25. The company has a market capitalization of $3.40 trillion, a P/E ratio of 14.52, a PEG ratio of 0.81 and a beta of 1.19. The company has a quick ratio of 2.64, a current ratio of 2.79 and a debt-to-equity ratio of 0.19. Alphabet Inc. has a fifty-two week low of $271.41 and a fifty-two week high of $404.47.

Alphabet (NASDAQ:GOOG - Get Free Report) last released its earnings results on Wednesday, October 28th. The information services provider reported $2.12 EPS for the quarter, missing the consensus estimate of $3.01 by ($0.89). The company had revenue of $127.58 billion for the quarter, compared to analyst estimates of $127.97 billion. Alphabet had a net margin of 50.03% and a return on equity of 43.33%. The firm's quarterly revenue was up 24.7% on a year-over-year basis. During the same period in the previous year, the business posted $2.87 EPS. Sell-side analysts predict that Alphabet Inc. will post 19.99 earnings per share for the current fiscal year.

Alphabet Profile

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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