Alphabet Inc. Stock Price Targets
Comprehensive analysis of short, mid, and long-term price targets for Alphabet Inc. (GOOGL).
Give me a comprehensive price target analysis for Alphabet Inc. (GOOGL).
Price Target Analysis for Alphabet Inc. (GOOGL)
Executive Summary
Alphabet Inc. (GOOGL) exhibits a strong financial profile with a current trading price of approximately $199.75. The stock maintains a solid valuation with a trailing P/E of around 21.27 and a P/B of 6.66, supported by robust margins and a market cap exceeding $2.4 trillion. The analyst consensus suggests a median price target of $220, with high estimates reaching $248. Technical indicators currently show positive momentum, with prices trading above the 50-day moving average and RSI levels indicating room for further upward movement. Given these factors, GOOGL presents a favorable risk-reward profile for investors with a medium to long-term horizon.
Fundamental Analysis
| Metric | Value |
|---|---|
| Market Cap | ~$2.42 trillion |
| Enterprise Value | ~$2.36 trillion |
| Trailing P/E | 21.27 |
| Forward P/E | 22.29 |
| Price-to-Book | 6.66 |
| Return on Equity | 34.83% |
| Profit Margins | 31.12% |
| Gross Margins | 58.94% |
| Operating Margins | 32.43% |
| Debt-to-Equity | 11.48 |
| Total Cash | ~$95.15 billion |
| Total Debt | ~$41.67 billion |
The company's financials demonstrate healthy profitability and manageable debt levels, supporting its valuation multiples.
Earnings Analysis
Recent Earnings Performance
Alphabet’s latest quarterly results reflect resilience, with net income from continuing operations at roughly $28.2 billion. EBITDA and operating income are also substantial, indicating robust operational efficiency despite macroeconomic headwinds.
EPS Trends
Earnings Per Share (EPS) have shown incremental growth:
- Current: 2.32 (quarterly)
- 1-year aggregated: approximately 10.58, representing a consistent upward trend over recent periods.
EPS Revisions
Analyst sentiment has been predominantly upward, with 49 out of 51 opinions revising earnings estimates higher in the past 30 days, indicating positive growth expectations.
Earnings Quality
Revenue growth remains solid, with stable profit margins and sustainable revenue streams from diversified business segments, underpinning earnings reliability.
Technical Analysis
| Indicator | Current Signal |
|---|---|
| Price Action | Trading above 50-day MA (~166), indicating bullish momentum |
| RSI (14) | Around 72, suggesting overbought but still upward room |
| MACD (12,26,9) | Positive with a widening gap, signaling continued upward trend |
The technical outlook favors further appreciation in the near term.
Analyst Consensus & Price Targets
| Statistic | Value |
|---|---|
| Number of Covering Analysts | 51 |
| Median Price Target | $220 |
| High Price Target | $248 |
| Low Price Target | $166 |
Price Target Analysis (Short, Mid, Long-Term)
| Horizon | Price Target | Justification & Key Drivers |
|---|---|---|
| Short-Term (3 months) | ~$205 - $210 | Technical momentum, earnings resilience, minimal macro headwinds. Near-term catalysts include investor sentiment and sector performance. |
| Mid-Term (12 months) | ~$220 - $230 | Earnings growth continuation, strong product pipeline, and potential AI-driven revenue uplift support target. |
| Long-Term (3+ years) | $240 - $250 | Sustained revenue diversification, global expansion, and innovation-led growth justify high end of target. Market dominance in core segments remains a catalyst. |
Key Risks & Opportunities
| Risks | Opportunities |
|---|---|
| Regulatory challenges and antitrust scrutiny | Leadership in AI and cloud technology |
| Macro-economic slowdown affecting ad spend | Potential for new product innovation |
| Intense competition from peers | Strategic acquisitions and diversification |
Investment Recommendation
Hold with a medium- to long-term outlook. Given the strong fundamentals, positive technical signals, and favorable analyst targets, the stock has the potential for moderate returns over the next 12-24 months, aligned with the targeted price range of ~$220-$250.
Note: The plotted horizontal support/resistance lines extend from the specified targets ($166, $220, and $248) over the next 30 days to visually support the analysis.