Alphabet (GOOGL) shares have seen mixed performance over the past week, but if you zoom out, the stock is up 9% in the past month and more than 37% for the past 3 months. Strong annual revenue and net income growth continue to keep investors watching.
See our latest analysis for Alphabet.
With Alphabet’s share price retreating slightly this week but remaining well ahead for the quarter, it is clear momentum is still firmly with the stock. The strong 1-year total shareholder return of 58% suggests that investors are still enthusiastic about its long-term prospects.
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With shares still trading about 15% below analyst price targets and Alphabet showing robust earnings growth, investors may wonder if there is still value left or if the market is already reflecting future gains.
Most Popular Narrative: 18.7% Undervalued
According to oscargarcia, Alphabet’s fair value sits much higher than the latest closing price. Their narrative points to transformative catalysts working in the company’s favor, setting expectations far beyond what most investors currently anticipate.
Alphabet is a compounding machine hidden within an ad empire. With AI monetization finally gaining traction, Cloud becoming profitable, and additional YouTube monetization on the horizon, this is not simply a big tech stock; it is an innovation platform priced as if it were a mature business. Investors gain high-margin growth, significant cash flow, a strong balance sheet, and exposure to everything from AI to driverless cars. It offers technology diversification through a single ticker.
Read the complete narrative.
Want to know the growth blueprint behind this high valuation? The driving forces include record ad profits, cloud momentum, aggressive share buybacks, and a profit playbook only hinted at in the numbers. Discover which bullish assumptions and breakthrough bets contribute to this bold fair value.
Result: Fair Value of $340.00 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, regulatory headwinds or shifts in digital ad demand could challenge Alphabet’s bullish outlook if market conditions or legal landscapes change suddenly.
Find out about the key risks to this Alphabet narrative.
Build Your Own Alphabet Narrative
If you are looking for a different angle or want to put the data to the test yourself, you can easily build your own narrative in just minutes. Do it your way
A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Alphabet.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
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