Alphabet Inc. $GOOGL Stock Sold by Yousif Capital Management LLC

Key Points

• Yousif Capital Management reduced its Alphabet stake by 0.5%, selling 2,739 shares and retaining 567,346 shares valued at approximately $195.2 million. Alphabet remains the firm’s sixth-largest holding and represents 2.1% of its portfolio.
• Alphabet shares have fallen 12.6% and recently traded near $283.82 after the company missed quarterly earnings expectations: EPS was $2.12 versus $3.02 expected, while revenue slightly missed forecasts.
• Google Cloud and AI demand showed strong growth, but heavy spending on data centers and AI capacity produced roughly $9.1 billion in negative free cash flow, increasing investor concerns about profitability and returns on investment.

Yousif Capital Management LLC lowered its stake in shares of Alphabet Inc. (NASDAQ:GOOGL - Free Report) by 0.5% in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 567,346 shares of the information services provider's stock after selling 2,739 shares during the quarter. Alphabet accounts for 2.1% of Yousif Capital Management LLC's investment portfolio, making the stock its 6th largest holding. Yousif Capital Management LLC's holdings in Alphabet were worth $195,213,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors and hedge funds have also bought and sold shares of GOOGL. EMC Capital Management purchased a new stake in shares of Alphabet in the second quarter valued at about $35,000. Core Capital Management & Research inc. bought a new position in shares of Alphabet during the second quarter valued at about $41,000. Intelligent Financial Strategies bought a new position in shares of Alphabet during the third quarter valued at about $41,000. Premier Financial Group purchased a new position in Alphabet during the second quarter worth about $45,000. Finally, Graney & King LLC boosted its holdings in Alphabet by 38.5% during the second quarter. Graney & King LLC now owns 180 shares of the information services provider's stock worth $64,000 after purchasing an additional 50 shares during the last quarter. 40.03% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other Alphabet news, Director Frances Arnold sold 83 shares of the stock in a transaction on Wednesday, September 30th. The stock was sold at an average price of $340.45, for a total transaction of $28,257.35. Following the completion of the transaction, the director directly owned 19,076 shares of the company's stock, valued at approximately $6,494,424.20. This represents a 0.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 11.61% of the company's stock.

Alphabet Stock Down 12.6%

GOOGL opened at $283.82 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. The stock has a market cap of $3.47 trillion, a price-to-earnings ratio of 14.81, a PEG ratio of 0.94 and a beta of 1.21. Alphabet Inc. has a twelve month low of $270.70 and a twelve month high of $408.61. The company's 50-day moving average price is $340.29 and its two-hundred day moving average price is $340.43.

Alphabet (NASDAQ:GOOGL - Get Free Report) last issued its quarterly earnings results on Wednesday, October 28th. The information services provider reported $2.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.02 by ($0.90). Alphabet had a return on equity of 46.63% and a net margin of 50.03%. The company had revenue of $127.58 billion for the quarter, compared to analysts' expectations of $127.96 billion. As a group, equities analysts expect that Alphabet Inc. will post 20.60 earnings per share for the current year.

Alphabet News Summary

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.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on GOOGL. Evercore reaffirmed an "outperform" rating and issued a $450.00 price objective on shares of Alphabet in a research report on Wednesday, September 16th. Wells Fargo & Company reissued an "overweight" rating and set a $417.00 target price (up from $411.00) on shares of Alphabet in a research report on Tuesday, October 6th. Phillip Securities upgraded Alphabet from a "moderate buy" rating to a "strong-buy" rating in a research note on Monday, July 27th. Freedom Capital raised Alphabet from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 23rd. Finally, Tigress Financial reaffirmed a "strong-buy" rating and issued a $485.00 target price (up from $415.00) on shares of Alphabet in a report on Thursday, September 17th. Five equities research analysts have rated the stock with a Strong Buy rating, forty-six have assigned a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Buy" and an average price target of $412.82.

About Alphabet

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.

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