Alphabet (NASDAQ:GOOG) Trading 2.5% Higher – Still a Buy?

Alphabet Inc. (NASDAQ:GOOG)’s share price traded up 2.5% during mid-day trading on Monday . The company traded as high as $370.65 and last traded at $367.11. 17,103,232 shares were traded during trading, a decline of 19% from the average session volume of 21,233,650 shares. The stock had previously closed at $358.16.

Alphabet News Summary

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Alphabet is benefiting from renewed optimism around its AI buildout, including reports that it is exploring Samsung as a manufacturing partner for TPU chips as TSMC faces capacity constraints. That suggests strong demand for Alphabet’s AI hardware and could help it secure more chip supply for future AI and cloud growth. Google’s Samsung Talks Highlight TSMC Capacity Crunch
• Positive Sentiment: Investors are also reacting to chatter that Alphabet is making a major capital raise to fund AI infrastructure, with commentary calling the move proactive for data center expansion. That supports the view that management is investing aggressively to stay competitive in AI search and cloud. Alphabet Stock (GOOG) Opinions on Capital Raise Amid AI Push
• Positive Sentiment: Alphabet’s latest earnings backdrop remains strong, with Q1 revenue up 21.8% year over year and results beating expectations. That gives investors more confidence that the company can fund heavy AI spending while still growing profits. Alphabet Stock (GOOG) Opinions on Capital Raise Amid AI Push
• Neutral Sentiment: Google also disclosed that a Chinese-linked hacking group targeted U.S. and Canadian research facilities for more than a year. While this underscores the importance of Alphabet’s security expertise, it does not appear to be a direct earnings driver for GOOG today. Chinese-linked hackers targeted U.S.,Canadian research facilities for a year, Google says
• Neutral Sentiment: Several articles highlighted Alphabet’s expanding AI footprint, including a new SpaceX compute rental relationship and broader enthusiasm around Gemini, quantum research, Waymo, and Wing. These reinforce the company’s optionality, but they are more narrative support than immediate catalysts. Google Is Paying $920 Million Per Month to SpaceX. Here’s Why Nvidia Is the Quiet Winner Nobody’s Talking About.
• Negative Sentiment: Some market commentary notes that big-name investors like Steve Eisman are rotating away from hyperscalers, which could weigh on sentiment for Alphabet even as the AI trade continues. This is more of a valuation/macro concern than a company-specific problem. ‘Big Short’ Investor Steve Eisman Is Hesitant About GOOGL, MSFT, But Bets On These Three Sectors

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the stock. Wells Fargo & Company reaffirmed an “overweight” rating and set a $435.00 price target on shares of Alphabet in a research note on Tuesday, June 2nd. JPMorgan Chase & Co. upped their price target on shares of Alphabet from $395.00 to $460.00 and gave the company an “overweight” rating in a research note on Thursday, April 30th. Freedom Capital downgraded shares of Alphabet from a “strong-buy” rating to a “hold” rating in a research note on Monday, May 4th. Stifel Nicolaus set a $420.00 price target on shares of Alphabet in a research note on Wednesday, May 20th. Finally, Weiss Ratings reaffirmed a “buy (b)” rating on shares of Alphabet in a research note on Monday, April 20th. Five investment analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Buy” and a consensus target price of $376.78.

Alphabet Price Performance

The company has a debt-to-equity ratio of 0.16, a current ratio of 1.92 and a quick ratio of 1.92. The firm has a market cap of $4.45 trillion, a P/E ratio of 28.00, a PEG ratio of 1.53 and a beta of 1.23. The stock’s 50-day simple moving average is $357.71 and its two-hundred day simple moving average is $329.52.

Alphabet (NASDAQ:GOOG) last posted its quarterly earnings data on Thursday, April 30th. The information services provider reported $5.11 earnings per share for the quarter, beating analysts’ consensus estimates of $2.68 by $2.43. Alphabet had a net margin of 37.92% and a return on equity of 38.99%. The business had revenue of $109.90 billion for the quarter, compared to analysts’ expectations of $106.96 billion. During the same quarter in the previous year, the business posted $2.81 earnings per share. The business’s revenue was up 21.8% compared to the same quarter last year. Equities research analysts forecast that Alphabet Inc. will post 14.3 earnings per share for the current fiscal year.

Alphabet Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Monday, June 8th will be given a dividend of $0.22 per share. This represents a $0.88 dividend on an annualized basis and a yield of 0.2%. This is a positive change from Alphabet’s previous quarterly dividend of $0.21. The ex-dividend date is Monday, June 8th. Alphabet’s dividend payout ratio (DPR) is presently 6.71%.

Insider Buying and Selling at Alphabet

In other Alphabet news, major shareholder 2019 Gp L.L.C. Gv sold 87,475 shares of the business’s stock in a transaction on Friday, May 15th. The shares were sold at an average price of $23.75, for a total transaction of $2,077,531.25. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CEO Sundar Pichai sold 32,500 shares of the business’s stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $307.89, for a total transaction of $10,006,425.00. Following the transaction, the chief executive officer owned 1,642,060 shares in the company, valued at $505,573,853.40. This trade represents a 1.94% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 191,966 shares of company stock valued at $16,963,968. Insiders own 12.99% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in GOOG. Imprint Wealth LLC bought a new position in shares of Alphabet in the third quarter worth about $31,000. Nvest Wealth Strategies Inc. bought a new position in shares of Alphabet in the fourth quarter worth about $38,000. Lifetime Wealth Management P.C. bought a new position in shares of Alphabet in the fourth quarter worth about $38,000. Bard Associates Inc. bought a new position in shares of Alphabet in the fourth quarter worth about $41,000. Finally, Towne Trust Company N.A grew its holdings in shares of Alphabet by 34.0% in the fourth quarter. Towne Trust Company N.A now owns 134 shares of the information services provider’s stock worth $42,000 after purchasing an additional 34 shares during the last quarter. 27.26% of the stock is currently owned by institutional investors.

Alphabet Company Profile

Alphabet Inc (NASDAQ: GOOG) is a multinational technology holding company headquartered in Mountain View, California. Formed in 2015 through a corporate restructuring of Google, Alphabet serves as the parent to Google LLC and a portfolio of businesses collectively known as “Other Bets.” Google was originally founded in 1998 by Larry Page and Sergey Brin; Alphabet is led by CEO Sundar Pichai, who oversees Google and the broader company while the founders remain prominent shareholders and influential figures in the company’s history.

Alphabet’s core business centers on internet search and advertising, with Google Search and the company’s ad platforms (including Google Ads and AdSense) generating the majority of revenue by connecting advertisers with consumers worldwide.