Key Points
- Alphabet director Frances Arnold sold 82 shares for $23,288 at an average price of $284, reducing her holdings by 0.43% to 19,157 shares. She also sold shares in August and September.
- Alphabet’s latest quarter fell short of expectations, with adjusted EPS of $2.12 versus a roughly $3.00 consensus and revenue of $127.6 billion slightly below forecasts. Heavy AI infrastructure spending left free cash flow negative by about $9.1 billion.
- Despite the earnings miss and stock decline, analysts remain broadly bullish, citing rapid Google Cloud growth and AI demand; Alphabet carries a consensus “Buy” rating and a $410.46 price target.
Alphabet Inc. (NASDAQ:GOOGL - Get Free Report) Director Frances Arnold sold 82 shares of the business's stock in a transaction that occurred on Thursday, October 29th. The stock was sold at an average price of $284.00, for a total transaction of $23,288.00. Following the completion of the sale, the director owned 19,157 shares in the company, valued at $5,440,588. The trade was a 0.43% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website.
Frances Arnold also recently made the following trade(s):
- On Wednesday, September 30th, Frances Arnold sold 83 shares of Alphabet stock. The shares were sold at an average price of $340.45, for a total transaction of $28,257.35.
- On Friday, August 28th, Frances Arnold sold 82 shares of Alphabet stock. The shares were sold at an average price of $337.71, for a total transaction of $27,692.22.
Alphabet Trading Down 1.4%
Shares of NASDAQ:GOOGL opened at $279.84 on Friday. The stock has a market capitalization of $3.42 trillion, a price-to-earnings ratio of 14.61, a PEG ratio of 0.83 and a beta of 1.21. Alphabet Inc. has a 1-year low of $270.70 and a 1-year high of $408.61. The company has a debt-to-equity ratio of 0.19, a quick ratio of 2.64 and a current ratio of 2.79. The company has a 50 day moving average price of $339.07 and a 200 day moving average price of $340.17.
Alphabet (NASDAQ:GOOGL - Get Free Report) last posted 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). The business had revenue of $127.58 billion during the quarter, compared to analyst estimates of $127.96 billion. Alphabet had a return on equity of 43.33% and a net margin of 50.03%. On average, research analysts anticipate that Alphabet Inc. will post 20.40 EPS for the current fiscal year.
Alphabet News Roundup
Here are the key news stories impacting Alphabet this week:
- Positive Sentiment: Google Cloud revenue more than doubled year over year to approximately $30.7 billion, while its backlog reached $561 billion. The results support Alphabet’s position as a major beneficiary of enterprise AI demand. Alphabet's Cloud Business Just Doubled
- Positive Sentiment: Several analysts remain constructive after the selloff. Guggenheim and Needham reaffirmed “buy” ratings with $450 targets, while Citigroup and Wells Fargo retained bullish ratings and projected substantial upside despite lowering their targets.
- Positive Sentiment: Alphabet’s AI ecosystem could gain from rising demand for cloud capacity and specialized chips. Waymo is also expanding internationally through a partnership with Toyota, although the business remains small relative to Alphabet’s core operations. Waymo taps Toyota to supply robotaxis
- Neutral Sentiment: Multiple securities law firms publicized class-action lawsuits and lead-plaintiff deadlines tied to alleged disclosures about Alphabet’s Gemini AI development. These notices add headline risk, but their direct financial impact remains uncertain.
- Negative Sentiment: Alphabet reported adjusted earnings of $2.12 per share, below consensus near $2.94-$3.02, while revenue of $127.6 billion also missed expectations. Search and other revenue grew about 12% to roughly $63 billion, but fell short of forecasts, reinforcing fears that AI-generated answers and “AI mode” searches may monetize less effectively than traditional Search.
- Negative Sentiment: AI infrastructure spending caused free cash flow to remain negative by roughly $9.1 billion for a second consecutive quarter. Investors are questioning whether the enormous capital outlays will produce adequate returns and whether Alphabet may need additional debt or equity financing.
- Negative Sentiment: An unrealized loss on Alphabet’s SpaceX investment reduced quarterly earnings by approximately $0.55 per share, while an EU antitrust fine further pressured results. Analysts including RBC, Wells Fargo, Citigroup, Wedbush, KeyCorp and Cantor Fitzgerald lowered price targets, even though most maintained positive ratings.
Institutional Trading of Alphabet
Several large investors have recently added to or reduced their stakes in the company. State Street Corp boosted its stake in shares of Alphabet by 5.6% during the 2nd quarter. State Street Corp now owns 238,977,259 shares of the information services provider's stock valued at $85,403,303,000 after buying an additional 12,718,127 shares during the period. Amundi increased its stake in shares of Alphabet by 4.6% in the second quarter. Amundi now owns 33,203,350 shares of the information services provider's stock worth $11,865,809,000 after acquiring an additional 1,457,371 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. increased its stake in shares of Alphabet by 10.1% in the second quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 17,724,321 shares of the information services provider's stock worth $6,334,186,000 after acquiring an additional 1,631,721 shares during the last quarter. Swiss National Bank increased its stake in shares of Alphabet by 7.1% in the first quarter. Swiss National Bank now owns 17,079,800 shares of the information services provider's stock worth $4,911,467,000 after acquiring an additional 1,139,400 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its holdings in shares of Alphabet by 90.9% during the first quarter. Arrowstreet Capital Limited Partnership now owns 17,040,373 shares of the information services provider's stock worth $4,900,078,000 after acquiring an additional 8,112,680 shares in the last quarter. 40.03% of the stock is owned by institutional investors and hedge funds.
Wall Street Analysts Forecast Growth
A number of brokerages recently issued reports on GOOGL. Benchmark restated a "buy" rating on shares of Alphabet in a report on Thursday, October 1st. Pivotal Research reaffirmed a "buy" rating and set a $475.00 target price (up from $470.00) on shares of Alphabet in a research report on Thursday, July 23rd. Phillip Securities raised Alphabet from a "moderate buy" rating to a "strong-buy" rating in a research note on Monday, July 27th. JPMorgan Chase & Co. boosted their price objective on Alphabet from $420.00 to $425.00 and gave the stock an "overweight" rating in a report on Thursday, October 15th. Finally, The Goldman Sachs Group reaffirmed a "buy" rating and set a $385.00 price objective on shares of Alphabet in a research note on Thursday. Five analysts have rated the stock with a Strong Buy rating, forty-six have given a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus target price of $410.46.
Read Our Latest Analysis on Alphabet
Alphabet Company Profile
(
Get Free Report)
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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