Alphabet Inc. Shows Strong Growth as Q4 Earnings Approach
Mountain View, California-based Alphabet Inc. (GOOGL), the parent company of popular products such as Chrome, Google Cloud, and Google Maps, has a market cap of $2.4 trillion. Alphabet is structured into three key segments: Google Services, Google Cloud, and Other Bets.
As the company prepares to announce its fourth-quarter earnings on February 4, analysts are optimistic. They predict a profit of $2.12 per share, marking a significant 29.3% increase from the $1.64 per share reported in the same quarter last year. Notably, Alphabet has successfully exceeded Wall Street’s profit estimates for four consecutive quarters. In the last reported quarter, the earnings per share (EPS) jumped 36.8% year over year to $2.12, surpassing projections by 15.9%.
Looking ahead to fiscal 2024, analysts forecast an EPS of $8.03, reflecting a solid 38.5% growth compared to $5.80 in fiscal 2023. Projections for fiscal 2025 suggest continued increases, with earnings expected to rise 11.1% to $8.92 per share.
Over the past 52 weeks, GOOGL stock has appreciated by 39.7%, considerably outpacing the S&P 500 Index’s rise of 24.2% and the 32.9% increase of the Communication Services Select Sector SPDR ETF Fund (XLC).
Following the release of impressive Q3 results on October 29, GOOGL stock surged by over 2.8% during trading hours. The company’s growth can be attributed to a strong focus on innovation, particularly in artificial intelligence (AI), which is significantly benefiting users and corporate partners alike.
Alphabet reported total revenues of $88.3 billion, reflecting a remarkable 15.1% year-over-year increase. Net income grew 33.6% to reach $26.3 billion. The introduction of new AI features has notably improved user search experience, while advancements in cloud services and improved performance on YouTube contributed to advertising and subscription revenues surpassing $50 billion for the first time across four quarters. Furthermore, the company has achieved substantial profit margins, showcasing operational efficiency and strategic insight.
The overall sentiment around GOOGL stock is extremely positive, earning a consensus “Strong Buy” rating. Among the 50 analysts covering the stock, 39 advocate for a “Strong Buy,” three recommend a “Moderate Buy,” and eight suggest holding. The average price target stands at $211.86, indicating a 9.2% upside from current prices.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are intended for informational purposes only. For more information, please refer to the Barchart Disclosure Policy here.
The views and opinions expressed herein are of the author and do not necessarily reflect those of Nasdaq, Inc.
