Alphabet Inc. $GOOGL Stock: NovaPoint Capital LLC Decreases Stake

Key Points

• NovaPoint Capital reduced its Alphabet stake by 12.5% in the third quarter, selling 1,846 shares and retaining 12,959 shares valued at approximately $4.46 million. Institutional investors collectively own about 40.03% of Alphabet.
• Alphabet’s latest quarterly results missed expectations, with earnings of $2.12 per share versus a $3.02 consensus estimate and revenue of $127.58 billion slightly below forecasts. Heavy investment in data centers and AI contributed to approximately $9.1 billion in negative free cash flow.
• Despite the earnings shortfall and several reduced price targets, Wall Street remains broadly positive, with Alphabet holding a consensus “Buy” rating and an average price target of $412.82.

NovaPoint Capital LLC reduced its stake in Alphabet Inc. (NASDAQ:GOOGL - Free Report) by 12.5% in the third quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 12,959 shares of the information services provider's stock after selling 1,846 shares during the quarter. NovaPoint Capital LLC's holdings in Alphabet were worth $4,459,000 as of its most recent SEC filing.

Several other large investors have also bought and sold shares of the stock. Boomfish Wealth Group LLC lifted its stake in Alphabet by 14.2% during the 3rd quarter. Boomfish Wealth Group LLC now owns 3,617 shares of the information services provider's stock valued at $1,245,000 after acquiring an additional 449 shares in the last quarter. MBL Wealth LLC grew its stake in shares of Alphabet by 2.7% in the 3rd quarter. MBL Wealth LLC now owns 24,441 shares of the information services provider's stock worth $8,410,000 after acquiring an additional 645 shares in the last quarter. Demars Financial Group LLC grew its stake in shares of Alphabet by 8.4% in the 3rd quarter. Demars Financial Group LLC now owns 3,908 shares of the information services provider's stock worth $1,345,000 after acquiring an additional 303 shares in the last quarter. Mills Wealth Advisors LLC grew its stake in shares of Alphabet by 20.8% in the 3rd quarter. Mills Wealth Advisors LLC now owns 1,057 shares of the information services provider's stock worth $364,000 after acquiring an additional 182 shares in the last quarter. Finally, Old North State Wealth Management LLC raised its holdings in shares of Alphabet by 4.0% in the third quarter. Old North State Wealth Management LLC now owns 12,513 shares of the information services provider's stock valued at $4,318,000 after purchasing an additional 480 shares during the last quarter. 40.03% of the stock is currently owned by institutional investors.

Alphabet Stock Performance

NASDAQ GOOGL opened at $283.82 on Friday. Alphabet Inc. has a 52-week low of $270.70 and a 52-week high of $408.61. The company has a 50-day simple moving average of $340.29 and a 200 day simple moving average of $340.43. The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.64 and a current ratio of 2.72. The company has a market capitalization of $3.47 trillion, a PE ratio of 14.81, a price-to-earnings-growth ratio of 0.94 and a beta of 1.21.

Alphabet (NASDAQ:GOOGL - Get Free Report) last announced its quarterly earnings data on Wednesday, October 28th. The information services provider reported $2.12 EPS for the quarter, missing the consensus estimate of $3.02 by ($0.90). The company had revenue of $127.58 billion during the quarter, compared to the consensus estimate of $127.96 billion. Alphabet had a return on equity of 46.63% and a net margin of 50.03%. On average, research analysts predict that Alphabet Inc. will post 20.60 EPS for the current year.

Key Headlines Impacting Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Google Cloud delivered exceptional growth. Cloud revenue more than doubled year over year to approximately $30.7 billion, while its backlog reached $561 billion. The results indicate strong demand for Alphabet’s AI infrastructure and cloud services. Alphabet’s Cloud Business Just Doubled
• Positive Sentiment: Alphabet’s AI ecosystem is gaining commercial traction. OpenAI reportedly plans to use Google’s custom TPU chips, and search query growth reached its strongest year-over-year pace in five years. These developments could support longer-term cloud, chip and AI revenue opportunities.
• Positive Sentiment: Some analysts remain constructive despite reducing targets. Guggenheim and Needham reaffirmed “buy” ratings, while RBC, Wedbush, KeyCorp, Susquehanna and Truist retained positive or outperform-equivalent ratings.
• Neutral Sentiment: Analyst expectations were reset lower. Multiple firms cut price targets, including RBC to $400, Wedbush to $387 and DA Davidson to $300, although most remained positive or neutral rather than bearish.
• Neutral Sentiment: Alphabet faces several securities class-action notices concerning alleged disclosures about the development of its Gemini AI models. The lawsuits and lead-plaintiff deadlines add reputational and legal uncertainty, but their immediate financial impact is unclear.
• Negative Sentiment: Alphabet missed Wall Street’s quarterly expectations. Adjusted earnings were $2.12 per share versus roughly $3.02 expected, while revenue of $127.6 billion was slightly below forecasts. Search and other revenue grew 12% but missed estimates for a second consecutive quarter, and YouTube advertising revenue also fell short.
• Negative Sentiment: AI spending is pressuring cash generation. Alphabet reported approximately $9.1 billion of negative free cash flow as capital expenditures for data centers and AI capacity exceeded operating cash flow. Investors are questioning whether the spending will generate adequate returns and whether it could constrain buybacks or dividends. Alphabet earnings miss reflects first real sign that AI is taking a bite out of search
• Negative Sentiment: AI-powered search appears less profitable than traditional search, raising concerns that AI could disrupt Alphabet’s core advertising engine even as it increases user engagement.
• Negative Sentiment: An unrealized loss on Alphabet’s SpaceX investment and an EU antitrust fine further reduced reported earnings, amplifying the quarter’s bottom-line miss.

Insider Activity

In other news, Director Frances Arnold sold 83 shares of the firm's stock in a transaction that occurred on Wednesday, September 30th. The shares were sold at an average price of $340.45, for a total transaction of $28,257.35. Following the completion of the sale, the director owned 19,076 shares in the company, valued at $6,494,424.20. This trade represents a 0.43% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 11.61% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the stock. Weiss Ratings reissued a "buy (b)" rating on shares of Alphabet in a research report on Thursday, October 15th. BMO Capital Markets restated an "outperform" rating and set a $480.00 price target (up from $465.00) on shares of Alphabet in a report on Tuesday, October 20th. Tigress Financial reaffirmed a "strong-buy" rating and issued a $485.00 price objective (up from $415.00) on shares of Alphabet in a research report on Thursday, September 17th. Yorkville Ives initiated coverage on shares of Alphabet in a research note on Monday, October 5th. They issued an "outperform" rating and a $400.00 price objective for the company. Finally, The Goldman Sachs Group reissued a "buy" rating and set a $385.00 target price on shares of Alphabet in a research report on Thursday. Five research analysts have rated the stock with a Strong Buy rating, forty-six have assigned a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Alphabet presently has an average rating of "Buy" and a consensus target price of $412.82.

Alphabet Company Profile

Alphabet Inc is a technology holding company best known for its Google subsidiary. Google operates a global internet-services business centered on online search, digital advertising, YouTube, Android, Chrome, Google Maps, Google Play, and a broad range of cloud-based productivity and collaboration tools.

Google Cloud provides infrastructure, data analytics, cybersecurity, artificial intelligence, and enterprise software services to businesses, governments, and other organizations. Alphabet also develops consumer hardware, including Pixel devices and products for connected homes, while investing in emerging businesses through its “Other Bets” segment, including autonomous transportation and life sciences initiatives.

Alphabet was established in 2015 as part of a corporate restructuring that made Google a subsidiary and provided a separate structure for its expanding portfolio of businesses.

Want to see what other hedge funds are holding GOOGL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Alphabet Inc. (NASDAQ:GOOGL - Free Report).

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.