New Street Research Forecasts Strong Price Appreciation for Alphabet (NASDAQ:GOOGL) Stock

Key Points

• New Street Research raised its Alphabet price target from $450 to $455 and kept a buy rating, implying about 23% upside from the current share price.
• Alphabet’s latest earnings beat expectations, with EPS of $5.11 versus the $2.64 estimate and revenue of $109.9 billion topping forecasts. Analysts now expect the company to earn $14.28 per share this fiscal year.
• Recent news around Alphabet is mixed but skewed positive: AI-related demand and Google Cloud deals are supporting sentiment, though investors remain wary that the company’s heavy AI spending and recent equity raise could pressure returns.

Alphabet (NASDAQ:GOOGL - Get Free Report) had its target price raised by investment analysts at New Street Research from $450.00 to $455.00 in a research report issued to clients and investors on Friday,MarketScreener reports. The firm currently has a "buy" rating on the information services provider's stock. New Street Research's price target would indicate a potential upside of 23.43% from the company's current price.

A number of other brokerages have also recently weighed in on GOOGL. Tigress Financial set a $415.00 price target on shares of Alphabet and gave the company a "strong-buy" rating in a research report on Thursday, February 19th. Wall Street Zen raised Alphabet from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. Wells Fargo & Company reiterated an "overweight" rating and set a $435.00 target price (up from $427.00) on shares of Alphabet in a research report on Wednesday, May 20th. Piper Sandler reissued an "overweight" rating and issued a $445.00 target price (up from $425.00) on shares of Alphabet in a report on Monday. Finally, Canaccord Genuity Group upped their target price on Alphabet from $415.00 to $450.00 and gave the company a "buy" rating in a research report on Thursday, April 30th. Two analysts have rated the stock with a Strong Buy rating, forty-seven have given a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, Alphabet presently has an average rating of "Moderate Buy" and a consensus target price of $413.13.

Alphabet Stock Down 1.0%

Alphabet stock traded down $3.57 during mid-day trading on Friday, hitting $368.62. The company had a trading volume of 8,418,731 shares, compared to its average volume of 31,758,146. The stock has a market cap of $4.47 trillion, a price-to-earnings ratio of 28.09, a PEG ratio of 1.58 and a beta of 1.23. Alphabet has a 1 year low of $162.00 and a 1 year high of $408.61. The company has a quick ratio of 1.92, a current ratio of 1.92 and a debt-to-equity ratio of 0.16. The business has a fifty day moving average of $351.15 and a 200 day moving average of $327.52.

Alphabet (NASDAQ:GOOGL - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The information services provider reported $5.11 earnings per share for the quarter, topping the consensus estimate of $2.64 by $2.47. Alphabet had a net margin of 37.92% and a return on equity of 38.99%. The business had revenue of $109.90 billion during the quarter, compared to the consensus estimate of $106.98 billion. On average, sell-side analysts expect that Alphabet will post 14.28 earnings per share for the current fiscal year.

Insider Activity at Alphabet

In other Alphabet news, Director Frances Arnold sold 102 shares of Alphabet stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $381.00, for a total value of $38,862.00. Following the transaction, the director directly owned 18,721 shares in the company, valued at approximately $7,132,701. This trade represents a 0.54% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, major shareholder 2019 Gp L.L.C. Gv sold 87,475 shares of the business's stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $23.75, for a total value of $2,077,531.25. The disclosure for this sale is available in the SEC filing. Insiders sold 193,016 shares of company stock worth $17,282,549 in the last ninety days. Company insiders own 11.61% of the company's stock.

Hedge Funds Weigh In On Alphabet

Several institutional investors have recently bought and sold shares of the company. CIBC Bancorp USA Inc. acquired a new stake in Alphabet during the third quarter worth approximately $416,217,000. NewEdge Wealth LLC raised its holdings in Alphabet by 11.8% in the 4th quarter. NewEdge Wealth LLC now owns 887,209 shares of the information services provider's stock valued at $277,696,000 after acquiring an additional 93,293 shares during the last quarter. Sovran Advisors LLC lifted its stake in shares of Alphabet by 23.6% during the 3rd quarter. Sovran Advisors LLC now owns 22,219 shares of the information services provider's stock worth $5,401,000 after purchasing an additional 4,241 shares during the period. World Investment Advisors boosted its holdings in shares of Alphabet by 9.2% during the fourth quarter. World Investment Advisors now owns 274,761 shares of the information services provider's stock worth $86,000,000 after purchasing an additional 23,107 shares during the last quarter. Finally, Belpointe Asset Management LLC boosted its holdings in shares of Alphabet by 5.4% during the third quarter. Belpointe Asset Management LLC now owns 72,608 shares of the information services provider's stock worth $17,652,000 after purchasing an additional 3,740 shares during the last quarter. 40.03% of the stock is owned by institutional investors and hedge funds.

Alphabet News Roundup

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet is benefiting from fresh AI-driven demand signals, including a larger Google Cloud partnership with Lovable and reports that Apple will use Google cloud infrastructure for Siri. Article Title Article Title
• Positive Sentiment: Investor confidence may be helped by reports of purchases from Berkshire Hathaway and ARK, suggesting notable institutional interest in Alphabet shares. Article Title
• Neutral Sentiment: Alphabet’s enlarged $84.75 billion equity raise underscores its aggressive AI infrastructure buildout, which could support long-term growth but also keeps attention on capex and financing needs. Article Title
• Neutral Sentiment: Recent commentary highlights Alphabet as an attractive “dip buy,” but this is opinion-based rather than a direct operational catalyst. Article Title
• Negative Sentiment: Some investors are worried that Alphabet’s growing AI spending and capital raise may pressure returns if the company’s massive infrastructure investments take longer than expected to pay off. Article Title
• Negative Sentiment: Reports of quiet layoffs in Google Cloud, including cuts to the Threat Intelligence Group, could raise concerns about internal restructuring and cloud momentum. Article Title

About Alphabet

Alphabet Inc is the holding company created in 2015 to organize Google and a portfolio of businesses developing technologies beyond Google's core internet services. Its principal operations are led by Google, which builds and operates consumer-facing products such as Google Search, YouTube, Android, Chrome, Gmail, Google Maps and Google Workspace, as well as advertising platforms (Google Ads and AdSense) that historically generate the majority of its revenue. Google also develops consumer hardware (Pixel phones, Nest smart-home devices, Chromecast) and developer and distribution platforms such as Google Play.

Beyond Google's consumer and advertising businesses, Alphabet invests in enterprise and infrastructure offerings through Google Cloud, which provides cloud computing, data analytics and productivity services to businesses and institutions.

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.