Alphabet (NASDAQ:GOOGL) Stock Price Up 1.7% – Still a Buy?

Shares of Alphabet Inc. (NASDAQ:GOOGL) shot up 1.7% during mid-day trading on Friday . The stock traded as high as $349.14 and last traded at $346.59. Approximately 24,688,343 shares traded hands during trading, a decline of 22% from the average daily volume of 31,526,232 shares. The stock had previously closed at $340.65.

Alphabet News Summary

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Cloud and AI growth remain the primary catalysts. Google Cloud’s rising revenue, AI adoption and reported $514 billion backlog strengthen Alphabet’s position against Microsoft and Amazon, although capacity constraints could limit near-term growth. Rising Cloud Revenue Strengthens Alphabet Against MSFT and AMZN
• Positive Sentiment: Advertising momentum supports the core business. Analysts point to a 14.4% increase in second-quarter advertising revenue, supported by Search, YouTube and Gemini-powered tools, while Alphabet’s diversified growth and comparatively low valuation improve its appeal versus other internet companies. GOOGL Rides on Strong Advertising Revenues
• Positive Sentiment: Analyst and technical signals are constructive. Brokerages retain an average “Buy” recommendation, while technical commentary says the stock is consolidating above prior resistance near $340 and finding support at a key level. Alphabet Receives Average Buy Recommendation
• Positive Sentiment: Google is reportedly testing a next-generation Gemini Flash model, and its AI Mode is adding flight-price tracking and hotel-booking features. These initiatives could increase AI engagement and create new commercial opportunities. Google Employees Are Testing the Next Gemini Flash AI Model
• Neutral Sentiment: Google changed its European spam/site-reputation policy after discussions with the European Commission, apparently seeking to avoid a potential antitrust fine. Avoiding a penalty is favorable, but policy concessions could affect search operations and publishers. Google Changes Spam Policy in EU to Avert Antitrust Fine
• Negative Sentiment: Regulatory and litigation overhang persists. The FTC is reportedly considering a lawsuit over YouTube account suspensions, Google agreed to a $353 million settlement with UK app developers, and several law firms announced securities-fraud investigations. These developments could raise legal costs and compliance risks, though no wrongdoing has been established. US FTC Probes YouTube Over Social Media Policies

Analyst Ratings Changes

Several analysts have weighed in on the stock. Freedom Capital raised shares of Alphabet from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 23rd. Royal Bank Of Canada reiterated an “outperform” rating and issued a $425.00 target price on shares of Alphabet in a research note on Thursday, July 23rd. The Goldman Sachs Group boosted their target price on Alphabet from $400.00 to $450.00 and gave the stock a “buy” rating in a report on Thursday, April 30th. Arete Research increased their price target on Alphabet from $405.00 to $425.00 and gave the stock a “buy” rating in a research report on Monday, May 18th. Finally, KeyCorp raised their price target on Alphabet from $425.00 to $445.00 and gave the company an “overweight” rating in a report on Friday, July 10th. Six investment analysts have rated the stock with a Strong Buy rating, forty-four have issued a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Alphabet presently has a consensus rating of “Buy” and a consensus target price of $420.19.

Alphabet Trading Up 1.7%

The company has a quick ratio of 2.64, a current ratio of 2.72 and a debt-to-equity ratio of 0.16. The business’s fifty day moving average is $350.06 and its two-hundred day moving average is $341.71. The firm has a market cap of $4.24 trillion, a price-to-earnings ratio of 17.41, a price-to-earnings-growth ratio of 0.96 and a beta of 1.24.

Alphabet (NASDAQ:GOOGL) last announced its quarterly earnings data on Wednesday, July 22nd. The information services provider reported $9.11 EPS for the quarter, beating analysts’ consensus estimates of $2.89 by $6.22. The firm had revenue of $119.80 billion for the quarter, compared to analyst estimates of $117.07 billion. Alphabet had a return on equity of 51.32% and a net margin of 54.77%. Equities analysts anticipate that Alphabet Inc. will post 20.5 earnings per share for the current fiscal year.

Alphabet Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, September 14th. Investors of record on Monday, September 7th will be issued a $0.22 dividend. The ex-dividend date is Friday, September 4th. This represents a $0.88 annualized dividend and a yield of 0.3%. Alphabet’s dividend payout ratio (DPR) is currently 4.42%.

Insider Transactions at Alphabet

In other Alphabet news, major shareholder 2019 Gp L.L.C. Gv sold 118,138 shares of the business’s stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $18.90, for a total transaction of $2,232,808.20. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, CAO Marsida Saraci sold 449 shares of the company’s stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $333.20, for a total transaction of $149,606.80. Following the transaction, the chief accounting officer owned 27,386 shares in the company, valued at approximately $9,125,015.20. The trade was a 1.61% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 451,843 shares of company stock valued at $12,343,852 in the last three months. Company insiders own 11.61% of the company’s stock.

Hedge Funds Weigh In On Alphabet

Several large investors have recently bought and sold shares of the business. Norges Bank bought a new stake in shares of Alphabet during the 4th quarter valued at $30,534,239,000. Cardano Risk Management B.V. boosted its position in shares of Alphabet by 855.3% in the 4th quarter. Cardano Risk Management B.V. now owns 14,525,280 shares of the information services provider’s stock worth $4,546,413,000 after purchasing an additional 13,004,828 shares during the last quarter. Vanguard Group Inc. grew its stake in shares of Alphabet by 2.4% during the fourth quarter. Vanguard Group Inc. now owns 528,969,322 shares of the information services provider’s stock worth $165,567,398,000 after purchasing an additional 12,531,695 shares during the period. Capital World Investors grew its stake in shares of Alphabet by 28.0% during the third quarter. Capital World Investors now owns 53,107,572 shares of the information services provider’s stock worth $12,910,542,000 after purchasing an additional 11,605,785 shares during the period. Finally, Diamant Asset Management Inc. increased its holdings in Alphabet by 28,950.0% in the first quarter. Diamant Asset Management Inc. now owns 9,291,926 shares of the information services provider’s stock valued at $2,671,986,000 after purchasing an additional 9,259,940 shares during the last quarter. 40.03% of the stock is currently owned by institutional investors and hedge funds.

About Alphabet

Alphabet Inc is the holding company created in 2015 to organize Google and a portfolio of businesses developing technologies beyond Google’s core internet services. Its principal operations are led by Google, which builds and operates consumer-facing products such as Google Search, YouTube, Android, Chrome, Gmail, Google Maps and Google Workspace, as well as advertising platforms (Google Ads and AdSense) that historically generate the majority of its revenue. Google also develops consumer hardware (Pixel phones, Nest smart-home devices, Chromecast) and developer and distribution platforms such as Google Play.

Beyond Google’s consumer and advertising businesses, Alphabet invests in enterprise and infrastructure offerings through Google Cloud, which provides cloud computing, data analytics and productivity services to businesses and institutions.