Wedbush Reiterates "Outperform" Rating for Alphabet (NASDAQ:GOOGL)

Key Points

• Wedbush reiterated an “Outperform” rating on Alphabet, while several other analysts also maintained bullish views and raised price targets. MarketBeat data shows Alphabet now has an average rating of Moderate Buy with an average price target of $413.73.
• Alphabet’s latest earnings beat expectations, reporting $5.11 EPS versus the $2.64 consensus and $109.9 billion in revenue versus expectations of $106.98 billion. The company also showed strong profitability, with a 38.99% return on equity and 37.92% net margin.
• The stock has been supported by strong investor interest and AI-related optimism, with the article citing continued momentum in AI search and Cloud. At the same time, Alphabet faces ongoing scrutiny from regulators and concerns about the risks of its AI rollout.

Alphabet (NASDAQ:GOOGL - Get Free Report)'s stock had its "outperform" rating reiterated by Wedbush in a research note issued to investors on Thursday,Benzinga reports.

Other analysts also recently issued reports about the stock. Oppenheimer increased their price target on shares of Alphabet from $425.00 to $445.00 and gave the company an "outperform" rating in a report on Friday, May 15th. Rothschild & Co Redburn boosted their price objective on shares of Alphabet from $390.00 to $430.00 and gave the stock a "buy" rating in a report on Thursday, April 30th. Needham & Company LLC reaffirmed a "buy" rating and set a $450.00 price objective on shares of Alphabet in a research report on Wednesday, June 3rd. Barclays reiterated a "buy" rating on shares of Alphabet in a research note on Friday, May 29th. Finally, Deutsche Bank Aktiengesellschaft reissued a "buy" rating on shares of Alphabet in a research report on Tuesday, April 28th. Three analysts have rated the stock with a Strong Buy rating, forty-seven have given a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, Alphabet has an average rating of "Moderate Buy" and an average price target of $413.73.

Alphabet Stock Up 3.2%

Shares of GOOGL stock opened at $370.92 on Thursday. Alphabet has a twelve month low of $180.48 and a twelve month high of $408.61. The company has a market capitalization of $4.49 trillion, a price-to-earnings ratio of 28.29, a PEG ratio of 1.54 and a beta of 1.24. The stock's 50 day simple moving average is $370.84 and its 200 day simple moving average is $337.62. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.92 and a current ratio of 1.92.

Alphabet (NASDAQ:GOOGL - Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The information services provider reported $5.11 earnings per share for the quarter, beating the consensus estimate of $2.64 by $2.47. The company had revenue of $109.90 billion during the quarter, compared to analysts' expectations of $106.98 billion. Alphabet had a return on equity of 38.99% and a net margin of 37.92%. As a group, research analysts predict that Alphabet will post 14.32 EPS for the current year.

Insiders Place Their Bets

In other Alphabet news, insider John Kent Walker sold 8,998 shares of the business's stock in a transaction dated Monday, June 29th. The shares were sold at an average price of $349.29, for a total value of $3,142,911.42. Following the transaction, the insider directly owned 75,290 shares in the company, valued at $26,298,044.10. The trade was a 10.68% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Marsida Saraci sold 449 shares of Alphabet stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $341.72, for a total transaction of $153,432.28. Following the completion of the transaction, the chief accounting officer owned 27,348 shares of the company's stock, valued at $9,345,358.56. This trade represents a 1.62% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 159,415 shares of company stock worth $7,672,279 in the last quarter. 11.61% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Alphabet

Institutional investors have recently bought and sold shares of the business. Processus Wealth & Capital Management LLC increased its stake in shares of Alphabet by 1.0% in the second quarter. Processus Wealth & Capital Management LLC now owns 20,509 shares of the information services provider's stock valued at $7,329,000 after buying an additional 198 shares in the last quarter. First Community Trust NA lifted its position in Alphabet by 1.6% during the 2nd quarter. First Community Trust NA now owns 18,694 shares of the information services provider's stock worth $6,681,000 after buying an additional 297 shares in the last quarter. Walker Asset Management LLC grew its holdings in Alphabet by 1.1% during the 2nd quarter. Walker Asset Management LLC now owns 3,070 shares of the information services provider's stock worth $1,097,000 after acquiring an additional 32 shares during the last quarter. Lee Kelleher & Klein Wealth Management acquired a new stake in Alphabet in the 2nd quarter valued at about $302,000. Finally, Buska Wealth Management LLC increased its position in Alphabet by 5.7% in the second quarter. Buska Wealth Management LLC now owns 875 shares of the information services provider's stock worth $313,000 after purchasing an additional 47 shares during the period. Institutional investors own 40.03% of the company's stock.

Alphabet News Roundup

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet is deepening its partnership with AI search startup Parallel Web Systems, a sign it is expanding its AI tools and reinforcing its position in AI-powered search. Why Google partnered with former Twitter CEO Parag Agrawal's $2 billion AI search startup
• Positive Sentiment: Warren Buffett publicly said he initiated Berkshire Hathaway’s investment in Alphabet, which is boosting investor confidence and reinforcing the stock’s appeal as a large-cap AI and advertising leader. Warren Buffett tells CNBC he initiated Berkshire Hathaway's investment in Alphabet
• Positive Sentiment: Analysts continue to highlight Alphabet’s AI momentum in Search and Cloud, with improving economics and a large backlog supporting the case for earnings growth and premium valuation. GOOGL Stock: Do AI Growth Drivers Justify the Premium Valuation?
• Neutral Sentiment: Alphabet remains in focus ahead of earnings, with investors watching cloud growth, capital spending, and search resilience for clues on whether AI investment is translating into stronger results. Alphabet’s AI Spending Question Looms Over Q2 Earnings
• Neutral Sentiment: Google said it made its largest solar and battery storage purchase to date, underscoring its long-term infrastructure spending and clean-energy commitments. Google's biggest clean power project is 40 miles north of xAI's unpermitted gas power plant
• Negative Sentiment: The EU’s top court upheld Google’s €750,000 Italian fine over gambling ads on YouTube, and regulators are also keeping pressure on the company with broader antitrust enforcement and search-related probes in Europe. EU court upholds Google's $854,250 Italian fine over gambling advertising
• Negative Sentiment: Google’s AI search products are drawing criticism over safety concerns for kids, adding another reputational and regulatory risk for the company’s AI rollout. Google's AI search engine poses ‘unacceptable risks for kids,' bombshell report finds

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.

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