Followers | 689 |
Posts | 143817 |
Boards Moderated | 35 |
Alias Born | 03/10/2004 |
Tuesday, June 08, 2021 11:48:10 AM
By: Haris Anwar/Investing.com | June 8, 2021
Google parent Alphabet (NASDAQ:GOOGL) is a star performer this year.
A member of the FAANG group of stocks, comprising such notables as, Apple (NASDAQ:AAPL) and Amazon.com (NASDAQ:AMZN), the move in this digital ad behemoth has been so strong this year that it has left many investors surprised, especially since the pandemic-driven boom in the tech rally is showing some signs of peaking.
The Mountain View, California-based company’s shares have soared about 40% this year, at a time when investors are taking a break from other high-growth contenders. Closing at $2,402.30 on Monday, Google remains the best-performing name among the five mega tech stocks.
Alphabet Weekly Chart
What’s attracting investors to buy Google shares is a clear sign that it’s emerging from the pandemic-triggered downturn much stronger, with its sales rebounding faster than expected.
In the quarter that ended Mar. 31, Alphabet posted a 35% jump in sales when compared with the same period last year. Overall, Alphabet generated $17.9 billion of net income, almost doubled the amount in the same quarter in the previous year.
This growth momentum, according to many analysts, will continue as consumers resume trips to restaurants, shops and even vacation destinations—activities that fuel internet traffic and generate ad revenue for Google.
More Upside
Barclays analysts in a recent note reiterated their call of Alphabet being among their favorite names in the mega-cap tech space, noting the outlook for its shares remains “bright.” The firm held its overweight rating, though raised its price target to $3,000 from $2,500.
Wedbush analysts, who have a $2,953 price target on the shares, said Google offers "a large market opportunity that we expect to have accelerated coming out of the pandemic."
According to Wedbush analysts:
"Alphabet is well positioned in a number of key areas across its businesses that we think can sustain overall growth in its core ad business [and] drive long-term sustainable top-line growth in its burgeoning cloud business.”
Despite some calls that Google stock is becoming expensive after this year’s rally, 42 firms still have a bullish view on the shares, with some of these forecasters calling for more than 20% gains.
Besides the company’s flagship ad business, the pandemic has also given a strong boost to other units that are likely to sustain their market share. YouTube ad revenue surged during the pandemic as the video-sharing platform reached more users between the ages of 25 and 49 than all cable networks combined.
YouTube ad revenue surged 49% in the past quarter, while YouTube Shorts, its competitor to TikTok, logged 6.5 billion daily views as of March, up from 3.5 billion at the end of 2020. Google’s cloud-computing business also grew quickly on a spike in demand for internet-based services from remote workers.
Bottom Line
With its traditional growth drivers remaining unchallenged, and the company positioning itself to grow faster in the post-pandemic world, Google’s shares will continue to outperform other mega tech peers. The stock could see more upside as the economy reopens quickly, bringing back digital ad sales from hospitality and travel businesses.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent GOOG News
- MongoDB and Google Cloud Collaborate to Optimize Gemini Code Assist for Developers Building Applications on MongoDB • PR Newswire (US) • 05/02/2024 10:00:00 AM
- Google Terminates Employees Over Protests Against Israeli Government Contract • IH Market News • 04/18/2024 12:20:50 PM
- Apple in Talks with Google to Integrate Gemini AI into iPhone, Shaping a New Era in Tech Collaboration • IH Market News • 03/19/2024 10:39:54 AM
- Futures Pointing To Continued Weakness On Wall Street • IH Market News • 03/05/2024 02:03:27 PM
- U.S. Stocks May Lack Direction Following Yesterday’s Modest Pullback • IH Market News • 02/27/2024 02:14:46 PM
- FTC to Inquire to Microsoft's, Google's, Amazon's AI Partnerships • Dow Jones News • 01/25/2024 06:12:00 PM
- Lüm Mobile Taps Alepo's TelcoBot.ai for Generative AI Customer Service • PR Newswire (US) • 01/25/2024 04:00:00 PM
- Alphabet on Track for Record High Close -- Data Talk • Dow Jones News • 01/25/2024 03:45:00 PM
- Google to Settle Chip Patent Lawsuit With Singular Computing • Dow Jones News • 01/24/2024 07:15:00 PM
- Alphabet Division X Cutting Dozens of Staff, Bloomberg Reports • Dow Jones News • 01/22/2024 04:32:00 PM
- Alphabet on Track for Highest Close Since February 2022 -- Data Talk • Dow Jones News • 01/22/2024 03:36:00 PM
- AST SpaceMobile Gets Investments From AT&T, Google • Dow Jones News • 01/18/2024 10:00:00 PM
- Google to Invest $1 Billion to Build UK Data Center • Dow Jones News • 01/18/2024 06:51:00 PM
- Applied Materials, Google to Collaborate on AR Technology • Dow Jones News • 01/09/2024 01:12:00 PM
- Alphabet on Track for Highest Close Since April 2022 -- Data Talk • Dow Jones News • 12/20/2023 03:49:00 PM
- Trending: Alphabet to Pay $700 Million in Google Play Settlement • Dow Jones News • 12/19/2023 08:13:00 PM
- Trending: Epic Games Wins Antitrust Lawsuit Against Google • Dow Jones News • 12/12/2023 03:50:00 PM
- Alphabet on Pace for Largest Percent Increase Since July -- Data Talk • Dow Jones News • 12/07/2023 03:22:00 PM
- Google, Canada Reach Deal Over Planned Online News Law • Dow Jones News • 11/29/2023 08:05:00 PM
- Google, Canadian Government Reach Deal on Online News Act, CBC Reports • Dow Jones News • 11/29/2023 05:23:00 PM
- VMware and Google Cloud announce planned PostgreSQL-compatible Database Solution for traditional and generative AI applications on VMware Cloud Foundation • Business Wire • 11/07/2023 08:05:00 AM
- Match Group, Google Reach Binding Term Sheet in Legal Battle • Dow Jones News • 10/31/2023 09:29:00 PM
- Alphabet Ends Down 9.5%, Sees Largest Percent Decrease Since March 2020 -- Data Talk Update • Dow Jones News • 10/25/2023 08:59:00 PM
- Alphabet Down Over 8%, on Pace for Largest Percent Decrease in Almost a Year -- Data Talk • Dow Jones News • 10/25/2023 02:48:00 PM
- Stocks to Watch: Microsoft, Alphabet, Stride • Dow Jones News • 10/25/2023 12:16:00 AM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM