Mountain View, California-based Alphabet Inc. (GOOGL) operates as a holding company, providing various internet products such as Chrome, Google Cloud, Google Maps, etc., healthcare services and more. With a market cap of $2.4 trillion, Alphabet operates through Google Services, Google Cloud, and Other Bets segments.
The internet giant is expected to announce its fourth-quarter results on Feb. 4. Ahead of the event, analysts expect Alphabet to report a profit of $2.12 per share, up a staggering 29.3% from $1.64 per share reported in the year-ago quarter. Furthermore, the company has surpassed Wall Street’s bottom-line estimates in each of the past four quarters. Its EPS for the last reported quarter surged 36.8% year-over-year to $2.12, exceeding analysts’ estimates by 15.9%.
For the full fiscal 2024, analysts expect Alphabet to deliver an EPS of $8.03, up 38.5% from $5.80 in fiscal 2023. While in fiscal 2025, its earnings are expected to grow 11.1% year-over-year to $8.92 per share.
GOOGL stock has soared 39.7% over the past 52 weeks, substantially outperforming the S&P 500 Index’s ($SPX) 24.2% surge and the Communication Services Select Sector SPDR ETF Fund’s (XLC) 32.9% returns during the same time frame.
GOOGL stock price gained over 2.8% in the trading session after the release of its impressive Q3 results on Oct. 29. The internet giant has been experiencing extraordinary momentum across segments, driven by its unwavering focus on innovation and long-term investment in AI which has been yielding significant benefits for its users and partners.
Alphabet reported a remarkable 15.1% increase in total revenues to $88.3 billion, coupled with an impressive 33.6% year-over-year growth in net income, totaling $26.3 billion. The introduction of new AI features has revolutionized and expanded the way users conduct searches. Additionally, it has made significant strides in its cloud solutions and its YouTube total ad and subscription revenues surpassed $50 billion over the past four quarters for the first time. Furthermore, the company’s solid margin expansion has led to notable profitability gains, reflecting its operational excellence and strategic foresight.
The consensus opinion on GOOGL stock is strongly bullish, with an overall “Strong Buy” rating. Out of the 50 analysts covering the stock, 39 recommend “Strong Buy,” three suggest “Moderate Buy,” and eight advise a “Hold” rating. Its mean price target of $211.86 represents a 9.2% premium to current price levels.
