Alphabet Stock Earnings Estimates Lifted by Erste Group Bank

Alphabet Inc. (NASDAQ:GOOGL) – Equities researchers at Erste Group Bank raised their FY2027 EPS estimates for shares of Alphabet in a research report issued to clients and investors on Wednesday, October 21st. Erste Group Bank analyst H. Engel now anticipates that the information services provider will post earnings of $15.18 per share for the year, up from their previous estimate of $15.01. The consensus estimate for Alphabet’s current full-year earnings is $20.60 per share.

Other analysts have also issued research reports about the company. Freedom Capital upgraded Alphabet from a “hold” rating to a “strong-buy” rating in a report on Thursday, July 23rd. Rosenblatt Securities reiterated a “buy” rating and issued a $410.00 price target on shares of Alphabet in a report on Thursday, September 3rd. DZ Bank raised Alphabet to a “strong-buy” rating in a research report on Thursday, July 23rd. Benchmark reissued a “buy” rating on shares of Alphabet in a research report on Thursday, October 1st. Finally, Royal Bank Of Canada restated an “outperform” rating and set a $425.00 price objective on shares of Alphabet in a research note on Thursday, July 23rd. Five equities research analysts have rated the stock with a Strong Buy rating, forty-seven have issued a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Buy” and a consensus target price of $425.04.

Alphabet Stock Performance

Shares of GOOGL stock opened at $324.22 on Friday. The firm has a market cap of $3.97 trillion, a price-to-earnings ratio of 16.28, a PEG ratio of 0.97 and a beta of 1.21. The company’s 50 day moving average is $343.31 and its 200 day moving average is $353.04. The company has a quick ratio of 2.64, a current ratio of 2.72 and a debt-to-equity ratio of 0.16. Alphabet has a 52-week low of $251.85 and a 52-week high of $408.61.

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

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. Gibbs Wealth Management grew its holdings in Alphabet by 25.2% in the third quarter. Gibbs Wealth Management now owns 40,841 shares of the information services provider’s stock valued at $14,053,000 after purchasing an additional 8,232 shares during the period. Lantern Wealth Advisors LLC raised its position in shares of Alphabet by 2.8% in the third quarter. Lantern Wealth Advisors LLC now owns 13,712 shares of the information services provider’s stock valued at $4,718,000 after buying an additional 371 shares during the last quarter. Murphy Pohlad Asset Management LLC grew its stake in Alphabet by 10.5% during the 3rd quarter. Murphy Pohlad Asset Management LLC now owns 2,633 shares of the information services provider’s stock valued at $906,000 after acquiring an additional 250 shares in the last quarter. Altura Wealth Advisors Inc. raised its holdings in Alphabet by 6.2% in the 3rd quarter. Altura Wealth Advisors Inc. now owns 25,864 shares of the information services provider’s stock valued at $8,899,000 after acquiring an additional 1,516 shares during the last quarter. Finally, Garrett Wealth Advisory Group LLC raised its holdings in Alphabet by 5.9% in the 3rd quarter. Garrett Wealth Advisory Group LLC now owns 7,364 shares of the information services provider’s stock valued at $2,534,000 after acquiring an additional 410 shares during the last quarter. Institutional investors and hedge funds own 40.03% of the company’s stock.

Insider Buying and Selling at Alphabet

In other Alphabet news, major shareholder 2019 Gp L.L.C. Gv sold 118,138 shares of the firm’s stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $18.90, for a total value of $2,232,808.20. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Marsida Saraci sold 449 shares of the business’s stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $333.20, for a total value of $149,606.80. Following the sale, the chief accounting officer owned 27,386 shares in the company, valued at $9,125,015.20. The trade was a 1.61% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 315,765 shares of company stock worth $6,297,980. 11.61% of the stock is owned by insiders.

Key Headlines Impacting Alphabet

Here are the key news stories impacting Alphabet this week:

• Positive Sentiment: Cloud and AI demand support the long-term case. Analysts and bullish investors point to strong Google Cloud growth, rising AI infrastructure demand and Alphabet’s full-stack AI strategy as potential drivers of future earnings and cash flow. Alphabet cloud growth article
• Positive Sentiment: OpenAI’s cloud expansion provides a tangible catalyst. OpenAI plans to make its models available through Google Cloud, potentially increasing cloud usage and strengthening Alphabet’s position as an enterprise AI provider. OpenAI Google Cloud article
• Positive Sentiment: Valuation remains attractive to some analysts. Citizens JMP maintained a “market outperform” rating despite reducing its price target from $515 to $450, still implying substantial upside from the current level. Citizens JMP rating
• Neutral Sentiment: Alphabet CEO Sundar Pichai says recursively self-improving AI is still in its early stages. The comments reinforce Alphabet’s long-term opportunity but also indicate that meaningful commercial benefits may require continued investment and development. Pichai AI comments
• Negative Sentiment: Investors are concerned about AI spending and execution. Reports that Alphabet may be paying SpaceX roughly $11 billion annually for computing capacity highlight concentration risk and raise questions about whether massive infrastructure spending will generate adequate returns. Alphabet SpaceX compute article
• Negative Sentiment: Gemini development delays triggered securities litigation. Multiple law firms are promoting class actions alleging Alphabet misrepresented the progress and launch timetable of Gemini 3.5 Pro. The filings follow a significant stock decline and add legal and reputational risk, although the allegations have not been proven. Alphabet securities lawsuit article
• Negative Sentiment: Regulatory and operational concerns are adding pressure. European regulators are questioning a Google Cloud outage that affected banks, while U.S. senators are scrutinizing Google’s use of AI in schools. These issues could increase compliance costs and political risk. Google Cloud outage article

Alphabet Company Profile

Alphabet Inc is a technology holding company best known for its Google subsidiary. Google operates a global internet-services business centered on online search, digital advertising, YouTube, Android, Chrome, Google Maps, Google Play, and a broad range of cloud-based productivity and collaboration tools.

Google Cloud provides infrastructure, data analytics, cybersecurity, artificial intelligence, and enterprise software services to businesses, governments, and other organizations. Alphabet also develops consumer hardware, including Pixel devices and products for connected homes, while investing in emerging businesses through its “Other Bets” segment, including autonomous transportation and life sciences initiatives.

Alphabet was established in 2015 as part of a corporate restructuring that made Google a subsidiary and provided a separate structure for its expanding portfolio of businesses.