Alphabet Inc. (NASDAQ: Alphabet Inc. (LSE: GOOGL) is one of the leading technology companies globally, most famous for the product Google it offers. Formed in 2015, Alphabet has its headquarters in Mountain View, California and businesses involving, but not limited to, search, cloud, and artificial intelligence, advertising, and many others. Alphabet has been functioning as a parent company for Google and other companies since its formation in 2015; they include YouTube, Waymo and Verily. 

By offering a wide range of solutions and services the company has a possibility to adapt to different industries including social media, digital advertising, self-driving cars, keeping at the same time strong positions in the international markets. Due to its financial performance and stock, it has received a lot of attention especially from institutional and retail customers.

Share Price Overview

Alphabet Inc’s Class A shares better known by its traded name GOOGL closed at $165.27 for the session after October 25 2024 noting a $ 2.55 or 1.57% increase over the prior session. Its market cap rose to about $2.013 trillion, showing it as one of the most influential firms in the technology industry. Measures of relative operating performance reflect modest fluctuation with a beta of 1.04 and a P/E ratio of 23.71. 

In the same regard, Alphabet’s EPS is 6.97, and the next earnings release is on 29-Oct-24. Alphabet also provides a dividend of $0.80 per share yielding 0.48% The most recent record date was September 9 2024. The one-year target estimate of the stock is $200.31, which indicates that the stock might be good news for those who intended to invest in this stock for the long-term investment.

Google is Supposedly Launching Its Next Major Gemini 2.0 Model, Set for December Release

Google owned by Alphabet Inc has planned to unleash its large AI model known as Gemini 2.0 in December. On the other hand, the up and coming version in OpenAI’s pipeline, called “Orion”, slated to be gradually rolled out to some partners by year end also depicts how cut-throat competition is in the AI innovation war.

Greedy in particular, OpenAI’s head of Global Affairs Chris Lehane stressed on the urgency for the U.S. to lead in AI in a world where it is competing with China. 

Google to Develop AI That Takes Over PCs

Google, a subsidiary of Alphabet Inc., is said to be organizing an early look at an artificial intelligence system known as Project Jarvis, which is capable of completing tasks such as search and purchasing through a browser.

Set to debut alongside the Gemini model in December this year, Project Jarvis might just be everything that Google has in its current arsenal of AI-based help. Yet some aspects of the plan still remain blurry and, as for the specific plan itself, Google has not said anything official about it.

Valuation Metrics

Alphabet Inc. currently holds a market cap of $2.04 trillion and an enterprise value of $1.97 trillion, reflecting its substantial position in the tech sector. Key valuation measures include a trailing price-to-earnings (P/E) ratio of 23.71 and a forward P/E ratio of 18.62, indicating expectations of growth. With a PEG ratio of 1.10 and price-to-sales ratio of 6.33, Alphabet's stock is perceived as a balanced mix of growth and profitability. The enterprise value to revenue stands at 6.00, while the enterprise value to EBITDA ratio is 17.08, marking its performance in capital efficiency.

Financial Highlights

Alphabet’s profitability remains strong with a profit margin of 26.70% and a notable return on assets (ROA) of 15.96% and return on equity (ROE) of 30.87%. The company's revenue over the trailing twelve months (ttm) reaches $328.28 billion, generating a net income of $87.66 billion and diluted earnings per share (EPS) of 6.97. 

Alphabet’s balance sheet shows substantial liquidity, with $100.72 billion in cash and a conservative debt-to-equity ratio of 9.55%. Levered free cash flow for the trailing twelve months stands at $43.99 billion, indicating robust cash generation for reinvestment and shareholder value.

Performance Overview

As of October 25, 2024, Alphabet Inc. (GOOGL) has demonstrated strong performance in comparison to the S&P 500 benchmark. Year-to-date (YTD), GOOGL has achieved a return of 18.60%, slightly underperforming the S&P 500’s 21.77%. Over a one-year period, GOOGL's return stands at 19.36%, compared to the S&P 500's 36.74%. 

However, GOOGL shows stronger resilience in longer-term returns, with a three-year return of 20.44% versus the S&P 500's 27.79%. Notably, over five years, GOOGL outperformed significantly, achieving a cumulative return of 163.17%, well above the S&P 500’s 92.94%. This long-term strength reflects Alphabet’s sustained growth and market competitiveness.

Research Analysis: Earnings and Revenue Performance

Alphabet Inc. (GOOGL) has consistently surpassed earnings expectations in recent quarters. In Q4 2023, Q1 2024 and Q2 2024, GOOGL exceeded earnings per share (EPS) forecasts by $0.05, $0.38, and $0.05, respectively, highlighting strong operational performance. As of Q2 2024, GOOGL reported revenue of $84.74 billion, with earnings reaching $23.62 billion. 

This robust revenue versus earnings profile underscores Alphabet’s effective cost management and profitability. The next earnings report is anticipated on October 29, 2024, which will provide further insights into the company's financial trajectory.

Technical Analysis

GOOG has shown a strong bullish trend, rebounding from a significant support level around $150 after reaching a high of $193.31 on July 8. Since bouncing off the $150 level, GOOG has maintained upward momentum, aiming for a retest of the $193.31 all-time high. The next target is set at the psychological $200 level, aligning with the one-year target estimate of $200.31, which suggests a positive long-term outlook. 

If a retracement occurs before continuing its bullish trend, the price may find support along an ascending trendline that has held since May 2023. This trendline provides a solid foundation for the stock's upward trajectory, indicating strong technical support for GOOG’s continued growth.

Price Prediction

Notes:

• 2023 Min/Max: Based on recent support at $150 and the all-time high of $193.31.

• 2024: Reflects a favorable outlook with a target estimate around $200.

• 2025-2030: Assumes sustained growth aligned with Alphabet’s technological advancements and market position, with gradual increases in minimum and maximum price targets each year.

Conclusion

Alphabet Inc remains a dominant force in the technology sector, bolstered by consistent financial performance, strategic AI advancements, and sustained investor interest. The company’s upcoming launches, including the Gemini 2.0 AI model and Project Jarvis, highlight Google’s commitment to innovation in artificial intelligence and user experience.

With strong fundamentals, bullish price momentum, and positive long-term growth prospects, Alphabet is well-positioned to maintain its leadership. While competition in the AI space intensifies, Alphabet’s solid market standing, strategic vision and high returns provide a favorable outlook for long-term investors.