Alphabet (GOOGL) has been making waves on Wall Street, with shares steadily climbing month over month. Investors have been keeping an eye on the company’s strong performance, curious about what might be sustaining this ongoing momentum.
See our latest analysis for Alphabet.
Alphabet’s momentum isn’t just a short-term story. After a strong streak of product launches and upbeat quarterly results, the company’s share price is up 37% so far this year, and its total shareholder return over the past year jumps to nearly 58%. Over longer periods, Alphabet has delivered remarkable gains for patient investors, with total shareholder return reaching over 170% for three years and exceeding 220% for five.
If you’re curious to see what other tech and AI leaders are delivering standout returns, it’s worth checking out See the full list for free..
With expectations running high and valuations near all-time peaks, the question for investors is whether Alphabet’s shares offer further upside or if the market has already factored in all the growth ahead.
According to Investingwilly’s narrative, Alphabet’s last close at $259.92 sits above an estimated fair value of $237.43. This assessment combines Alphabet’s blue-chip credentials with a focus on both hot growth stories and current market concerns, creating a lively debate around Alphabet’s true worth today.
“Notably, Alphabet stands out among the Magnificent 7 as the most undervalued on a price-to-earnings (P/E) basis. Despite its consistent revenue and earnings growth, Alphabet trades at a discount compared to peers like Microsoft, Apple, and Amazon. The company’s substantial share buyback program underscores management’s confidence in its long-term prospects. In 2024, Alphabet repurchased approximately $17.6 billion worth of shares, enhancing shareholder value while reducing outstanding shares.”
Read the complete narrative.
Curious why this narrative sees value the market is missing? One number underpins the verdict, but it’s the bold forecasts and margin expectations that really make the difference. Dive in to see which future projections, bullish assumptions, and management moves drive this surprising headline figure.
Result: Fair Value of $237.43 (OVERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, regulatory pressures and macroeconomic uncertainties still loom. Any negative developments in these areas could quickly undermine the bullish outlook.
Find out about the key risks to this Alphabet narrative.
