Alphabet: Why Investors Think This Stock Is A Buy Now

[KyleLennon]

The similarity of Google’s and Facebook's business models, fueled by Facebook’s data leak, resulted in a dip for Alphabet’s stock price earlier last week. Both companies obtain the majority of their revenue from advertising. The impact is likely to continue until Facebook is completely cleared from the data leak scandal dating back three years.

Data is the driving factor behind IT companies such as Google, and cybersecurity breaches are at all-time high. The perceived lack of data integrity has affected investors’ sentiment about the advertising giants.

However, the Facebook data breach is likely to be a temporary occurrence only. Both Google and Facebook have a solid data governance model. So now may be a good opportunity to buy these stocks at relatively low prices.

Google dominates mobile OS ecosystem. More than 60% of the US and 80% of the global mobile OS market share is tied to Alphabet.

Google’s core products are going strong. Some core products and services that are doing well are YouTube, Gmail, Google Play, Pixel phones, and Google Cloud.

The Waymo subsidiary of Alphabet rules the autonomous vehicles sector. Waymo has also become one of the leading AI companies.

On the negative side, Google is facing tough competition from rivals like Amazon, particularly now that Amazon is gaining speed in the advertising space.

Per Finstead Research, Google’s average price target is almost $1283.

How do you think? 🙂

 

[steve4trading]

While some of this may be true, I think Alphabet is going to have some rough waters. Too many of their products have new, competitive rivals and the data issues aren't going away soon. Some estimate it's going to take 1 - 2 months and Google could easily be side - side with FB because of how they work. There have been deep issues with the company for a long time and a lot of speculation of the products they are trying to introduce.

 

[Brumby]

The similarity of Google’s and Facebook's business models, fueled by Facebook’s data leak, resulted in a dip for Alphabet’s stock price earlier last week. Both companies obtain the majority of their revenue from advertising. The impact is likely to continue until Facebook is completely cleared from the data leak scandal dating back three years.

Data is the driving factor behind IT companies such as Google, and cybersecurity breaches are at all-time high. The perceived lack of data integrity has affected investors’ sentiment about the advertising giants.

However, the Facebook data breach is likely to be a temporary occurrence only. Both Google and Facebook have a solid data governance model. So now may be a good opportunity to buy these stocks at relatively low prices.

Google dominates mobile OS ecosystem. More than 60% of the US and 80% of the global mobile OS market share is tied to Alphabet.

Google’s core products are going strong. Some core products and services that are doing well are YouTube, Gmail, Google Play, Pixel phones, and Google Cloud.

The Waymo subsidiary of Alphabet rules the autonomous vehicles sector. Waymo has also become one of the leading AI companies.

On the negative side, Google is facing tough competition from rivals like Amazon, particularly now that Amazon is gaining speed in the advertising space.

Per Finstead Research, Google’s average price target is almost $1283.

How do you think? 🙂

Meaningless. If you are going to buy on fundamentals then the key question is what is its historical and prospective PE? The FANGS are into bubble territory simply based on prospective valuation.

 

[KyleLennon]

While some of this may be true, I think Alphabet is going to have some rough waters. Too many of their products have new, competitive rivals and the data issues aren't going away soon. Some estimate it's going to take 1 - 2 months and Google could easily be side - side with FB because of how they work. There have been deep issues with the company for a long time and a lot of speculation of the products they are trying to introduce.

I agreed that many alphabet's products have many competitors. From my view, competitors are around you no matter where you are, no one can avoid it. The only solution is keep improving.

I am realist. I know that I can not survive without gmail, google map, youtube, and so on. These apps already became people' s necessities in their life.

Due to its brand and reputation, it can open and occupy the new market area easily and rapidly.

 

[KyleLennon]

Meaningless. If you are going to buy on fundamentals then the key question is what is its historical and prospective PE? The FANGS are into bubble territory simply based on prospective valuation.

GOOG Forward P/E Ratio is 28.12% and its Trailing P/E Ratio is 39.10%.
Moreover, its quarterly revenue growth was 23.70%, higher than the industry and sector average revenue growth (11.16% and 7.00%, respectively).

I know that data is important, but knowing about what will happen in the future is also important. For example, you had company for a couple of months, you and your friends know that your new products will be popular in the coming months, but unfortunately, due to many reasons, sales are bad based on historical data. Will you close your company or keep doing it?

 

[Brumby]

GOOG Forward P/E Ratio is 28.12% and its Trailing P/E Ratio is 39.10%.
Moreover, its quarterly revenue growth was 23.70%, higher than the industry and sector average revenue growth (11.16% and 7.00%, respectively).

I know that data is important, but knowing about what will happen in the future is also important. For example, you had company for a couple of months, you and your friends know that your new products will be popular in the coming months, but unfortunately, due to many reasons, sales are bad based on historical data. Will you close your company or keep doing it?

.... so are perennial lottery buyers. If you want to invest based on fundamentals then invest on that basis. However hope and fundamentals are not the same thing, a point of distinction that matters.

 

[KyleLennon]

.... so are perennial lottery buyers. If you want to invest based on fundamentals then invest on that basis. However hope and fundamentals are not the same thing, a point of distinction that matters.

Haha, I think an investor will be more concerned about the target company's long term benefit, like what projects will launched and how they will contribute to the company. And A gambler will focus on short term benefits that the target company can make currently.

Personally, I will check any news about the target company, and also look at those data, like Beta, PE...Moreover, I will also try to versify what projects or products will help the company to generate money in the long run. For me, how to verify, check different kinds of websites, and discuss with people.

 

[Brumby]

Haha, I think an investor will be more concerned about the target company's long term benefit, like what projects will launched and how they will contribute to the company.

Knowledge of prospective projects are meaningless in of themselves unless you can make some determination in how those projects are additive in terms of potential top line and accretion in earnings stream and hence on prospective valuation of the enterprise.

Personally, I will check any news about the target company, and also look at those data, like Beta, PE...Moreover, I will also try to versify what projects or products will help the company to generate money in the long run. For me, how to verify, check different kinds of websites, and discuss with people.

That is well and good but those information that are meaningful in helping to make an assessment in prospective valuation are absent in your analysis. My point is if you want to be an analyst then be one.

For example, this is what you posted :

The similarity of Google’s and Facebook's business models, fueled by Facebook’s data leak, resulted in a dip for Alphabet’s stock price earlier last week. Both companies obtain the majority of their revenue from advertising. The impact is likely to continue until Facebook is completely cleared from the data leak scandal dating back three years.

Data is the driving factor behind IT companies such as Google, and cybersecurity breaches are at all-time high. The perceived lack of data integrity has affected investors’ sentiment about the advertising giants.

However, the Facebook data breach is likely to be a temporary occurrence only. Both Google and Facebook have a solid data governance model. So now may be a good opportunity to buy these stocks at relatively low prices.

Google dominates mobile OS ecosystem. More than 60% of the US and 80% of the global mobile OS market share is tied to Alphabet.

Google’s core products are going strong. Some core products and services that are doing well are YouTube, Gmail, Google Play, Pixel phones, and Google Cloud.

The Waymo subsidiary of Alphabet rules the autonomous vehicles sector. Waymo has also become one of the leading AI companies.

On the negative side, Google is facing tough competition from rivals like Amazon, particularly now that Amazon is gaining speed in the advertising space.

Per Finstead Research, Google’s average price target is almost $1283.

How does all that translate into some meaningful valuation of Alphabet and its future prospect? I suggest you actually read research analyst reports to get a flavor of what is actually involved.

 

[KyleLennon]

Alphabet (NASDAQ:GOOGL) was downgraded by equities research analysts at Vetr from a “strong-buy” rating to a “buy” rating in a research note issued on Friday. They presently have a $1,143.20 target price on the information services provider’s stock. Vetr‘s target price points to a potential upside of 10.23% from the company’s previous close.