Alphabet Inc.’s Stock Price Plummeted Recently, But There Might Be Trouble Ahead

Alphabet Inc. (NASDAQ:GOOG) traded at $120.05 at last check on Monday, August 08, made an upward move of 1.55% on its previous day’s price.

Looking at the stock we see that its previous close was $118.22 and the beta (5Y monthly) reads 1.08 with the day’s price range being $116.71 – $118.86. The company has a trailing 12-month PE ratio of 20.49. In terms of its 52-week price range, GOOG has a high of $152.10 and a low of $102.21. The company’s stock has lost about -0.91% over that past 30 days.

Alphabet Inc. has a market cap of $1561.00 billion and is expected to release its quarterly earnings report on Oct 24, 2022 – Oct 28, 2022. Estimates by analysts give the company expected earnings per share (EPS) of $1.27, with the EPS growth for the year raised at $5.19 for 2022 and $5.98 for next year. These figures represent -7.50% and 15.20% growth in EPS for the two years respectively.

Analysts tracking the company’s growth have also given it a consensus growth in revenue estimated at $70.93 billion, with a low of $67.83 billion and a high of $73.02 billion. The median projection represents growth squeezing down to 8.90% compared to sales growth for the corresponding quarter a year ago. According to analyst consensus estimates figures, the company’s yearly revenue forecast for 2022 is expected to hit $289.07 billion, or 12.20% up from figures reported last year.

There have been 1 upward and no downward revisions for the stock’s EPS in last 7 days, something that reflects the nature of company’s price movement in short term. On the other hand, looking at the outlook for the GOOG stock, short term indicators assign the stock an average of Hold, while medium term indicators assign it an average of 50% Sell. Long term indicators on average place the stock in the category of 50% Sell.

Based on estimates by 49 analysts, where scores have ranged from 1.00 for a strong buy to 5.00 for a strong sell, 4 have rated the Alphabet Inc. (GOOG) stock as a Hold, while 37 rate it as a Buy. 8 analyst(s) rate it as overweight while 0 of them rated it as underweight, whereas 0 suggest the stock as a Sell. The stock has an overall rating of Buy and investors could take advantage and scoop up stock of the company.

Looking further, we note that the PEG ratio for the GOOG stock currently stands at 1.43, and the most recent price level today is 5.49% off its SMA20 and 5.97% from its 50-day simple moving average. The RSI (14) is pointing at 59.68 while the volatility over the past week is 2.15% and jumps to 3.00% over the past one month. The average price target for the stock over the next 12 months is $141.57, with the estimates having a low of $113.00 and a high of $165.00. These price ends are 5.87% and -37.44% off the today’s price level respectively, although investors could be excited at the prospect of a -16.62% if the GOOG share price touches on the median price of $140.00.

Let’s briefly compare Alphabet Inc. (GOOG) stock to its peers. We find that today’s price change of 1.55% and -13.67% over the past 12 months for GOOG competes that of Microsoft Corporation (MSFT), which has seen its stock price rise 0.62% in the latest trading session and is -2.28% over the last one year. Another of its peers Inc. (AMZN) has gained 1.36% today, and was -16.59% down over the past year, while Meta Platforms Inc. (META) is also up 4.98% yet, while its price remains in the red at -53.96% over the same period. Alphabet Inc. has a P/E ratio of 20.49 compared to Microsoft Corporation’s 29.33 and Inc.’s 126.62. In contrast to these companies, both the S&P 500 Index.

Coming back to Alphabet Inc. (NASDAQ:GOOG), we note that the average 3-month trading volume was 31.00 million, while that of the preceding 10-day period stands at 25.85 million. Current shares outstanding are 6.16 billion.

The insiders hold 0.04% of the company’s shares while institutions hold 65.25%. The data shows that short shares as of Jul 14, 2022, stood at 29.98 million at a short ratio of 0.94. This represents a 0.23% short interest in shares outstanding on Jul 14, 2022. Shares short fall in July from the previous month at 37.52 million. Investors should be excited about this stock as its upside potential is great, with today’s price pushing the stock -18.29% down in year-to-date price movement.

Leave a Reply

Your email address will not be published. Required fields are marked *