Latest news with #GOOGL
CNBC
2 hours ago
- Business
- CNBC
An options trade on Alphabet that bets on more upside going forward
My bullish thesis on Alphabet from last month has delivered a 122% return in just one month. Given the positive momentum, strong fundamentals and leadership in AI and cloud services, we are reiterating our bullish stance with an updated options trade. Trade timing The timing setup remains favorable, with GOOGL recently breaking out above a major resistance level at $180. Coupled with outperformance of the S & P 500 suggests potential further upside to our $202 target, which would fill the gap from February this year. Fundamentals GOOGL continues to offer substantial upside, supported by compelling valuation and superior profitability: Forward PE ratio: 19.3x vs. Industry Average 19.5x Expected EPS growth: 13% vs. Industry Average 12% Expected revenue growth: 11% vs. Industry Average 12% Net margins: 31% vs. Industry Average 6% Bullish Thesis Continued market leadership: Alphabet remains dominant across search, advertising, and cloud services, consistently driving revenue growth and strong financial performance. Innovation and AI: Google's continued investments and success with Gemini AI, now reaching over 1.5 billion monthly active users, and the robust growth of Google Cloud underscore strong future revenue potential. Shareholder returns: A recently executed $70 billion stock repurchase plan and a dividend increase reflect management's confidence and commitment to shareholder value. Updated Options Trade To capitalize on further upside, I'm initiating a new trade by selling an Aug. 29, $190/$180 put vertical for a credit of $3.80: Sell Aug. 29, $190 put @ $7.70 Buy Aug. 29, $180 put @ $3.90 Maximum reward: $380 per contract if GOOGL remains above $190 at expiration. Maximum risk: $620 per contract if GOOGL falls below $180 at expiration. Breakeven point: $186.20 View this Trade with Updated Prices at OptionsPlay This updated trade strategy leverages Alphabet's ongoing technical strength, compelling valuation, and leadership in strategic growth areas like AI and cloud services. With a defined risk and favorable probability of profit, this put vertical spread offers continued bullish exposure to Alphabet's upward potential DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
Business Insider
8 hours ago
- Business
- Business Insider
‘Don't Be Late to the Party,' Top Analysts Hike Alphabet Stock's (GOOGL) Target Just Before Q2 Results
Alphabet (GOOGL) is receiving analyst attention ahead of its Q2 earnings, due on Wednesday, July 23. Two of the Top analysts raised the price target on GOOGL stock, citing strong near-term fundamentals and AI revenue growth potential. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Currently, Wall Street analysts expect Alphabet to report earnings per share (EPS) of $2.18 for the second quarter, above the $1.89 posted in the same period last year. Also, revenue is projected to grow by almost 11% year-over-year to $93.97 billion. Kelley Calls GOOGL Stock 'Controversial' Mark Kelley of Stifel raised his price target to $218 from $200, while maintaining a Buy rating. The five-star analyst sees strong performance in Alphabet's core businesses, particularly Search, where AI Overviews are driving better monetization despite weaker click volumes. YouTube estimates also appear solid. He expects Alphabet to post solid Q2 results. Still, he cautioned that any post-earnings rally may be short-lived given concerns about Alphabet's AI strategy and ongoing DOJ lawsuits. Also, he called the stock 'controversial.' Shmulik Sees Near-Term Strength for Alphabet Meanwhile, Bernstein's Mark Shmulik bumped his target to $195 from $185 and reiterated a Hold rating on GOOGL stock. Shmulik praised Alphabet's Q1 performance, noting 10% year-over-year growth in Search and YouTube. He pointed to strong growth in Search and YouTube from Q1 and expects similar trends to continue, supported by improved user engagement and rising Google app downloads. Shmulik also sees potential upside from the Gemini AI subscription price hike, which could boost Cloud revenue. Despite the positive setup, he remains cautious beyond the near term due to legal challenges and intense competition in digital advertising and AI. What Is the Target Price for Google Stock? On TipRanks, GOOGL stock has received a Strong Buy consensus rating, with 30 Buys and nine Holds assigned in the last three months. The average Google stock price target is $206.51, suggesting a potential upside of 7.93% from the current level.
Business Insider
9 hours ago
- Business
- Business Insider
Alphabet Stock (GOOGL) Jumps on Early Google Pixel 10 Reveal
Alphabet (GOOGL) stock was up on Tuesday after subsidiary Google revealed its upcoming Pixel 10 smartphone early. A new video on the Google Store revealed the appearance of the Pixel 10 well before its official launch on Aug. 20, 2025. Google likely revealed the design of the new smartphone early to cut off leakers, who have posted quite a bit of information about the device. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. However, the reveal of the Pixel 10 isn't as surprising as some might think. That's because this new smartphone largely follows the same design as its predecessor. Even the most diehard Pixel fans may have trouble telling the difference between the Pixel 9 and the Pixel 10. To be fair, not every new smartphone release needs a design overhaul. Sticking with a form factor that users know could make them more comfortable with upgrading to the Pixel 10. Additionally, there are sure to be internal changes that are more important to consumers than the outside appearance of the new device. Alphabet Stock Movement Today GOOGL stock jumped 0.34% on Tuesday, keeping the stock up 0.83% year-to-date and 4.57% over the past 12 months. Investors will also note that Alphabet is about to release its Q2 2025 earnings report. That will come out after markets close on Wednesday. Wall Street expects the tech giant to report adjusted EPS of $2.18 and revenue of $93.96 billion, compared to Q2 2024's EPS of $1.89 and revenue of $84.64 billion. Is Alphabet Stock a Buy, Sell, or Hold? Turning to Wall Street, the analysts' consensus rating for Alphabet is Strong Buy, based on 30 Buy and nine Hold ratings over the past three months. With that comes an average GOOGL stock price target of $205.71, representing a potential 8.59% upside for the shares.
Business Insider
11 hours ago
- Business
- Business Insider
Alphabet (GOOGL) Investors Bet that Q2 Results Will Outweigh Antitrust Risks
Alphabet (GOOGL) investors appear to be betting that strong second-quarter earnings will outweigh concerns about a major antitrust ruling that is expected by August, according to Bloomberg. Indeed, the Justice Department is considering breaking up the tech giant's internet search business, but some experts say that if Alphabet meets growth expectations, the stock could still be a smart buy. As a result, shares have been rallying into earnings, and if the stock closes higher today, it would be the 10th straight day of gains, something it hasn't done since 2010. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. It is worth noting that for the upcoming quarter, analysts expect Alphabet to report $2.18 per share in earnings and nearly $94 billion in revenue, which are increases of 15% and 11%, respectively, from last year. In addition, this growth trend is projected to continue until 2028. Still, Alphabet is trailing behind competitors like Meta (META) and the Nasdaq 100 Index (QQQ) this year, partly because investors are worried that AI tools like ChatGPT could threaten Google's dominance in the search market. The antitrust case is also a big concern. In fact, the Justice Department wants Google to sell its Chrome browser and stop paying companies like Apple (AAPL) to be the default search engine on its devices. Nevertheless, Alphabet is expected to benefit from the rise of AI, especially in its cloud business, which recently signed a deal with OpenAI to provide it with more computing power. Moreover, GOOGL stock is trading at just 18 times estimated earnings, making it the cheapest among the top tech giants. Is Google Stock a Good Buy? Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 30 Buys and nine Holds assigned in the past three months. Furthermore, the average GOOGL price target of $205.71 per share implies 8.5% upside potential.
Business Insider
13 hours ago
- Business
- Business Insider
Google (GOOGL) Plans to Pay News Outlets as Part of Its New AI Project
Tech giant Google (GOOGL) is working on a new project that would involve paying news organizations to use their content in artificial intelligence tools, according to a report by Bloomberg. Indeed, the company plans to start with a pilot program that includes about 20 national news outlets. While Google confirmed that it is exploring new types of partnerships and features, it didn't share details about which companies are involved or exactly how the project would work. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. According to sources familiar with the plan, the licensing project is designed for specific AI-related products, although no one has revealed yet what those products are or what terms the deals might include. Nevertheless, this move comes after earlier attempts by Google to support news outlets, such as its $1 billion 'News Showcase' initiative that launched in 2020. That program, which was meant to benefit both publishers and readers, grew to include over 2,300 publications in 22 countries by mid-2023. Separately, Google signed a deal with The Associated Press earlier this year to provide real-time news updates in order to improve search results in its Gemini app. However, publishers have recently become worried that Google's AI features, such as AI Overviews and chatbots, are reducing their web traffic. In fact, a June report by The Wall Street Journal said that this change has led some media companies to rethink their business models and lay off employees. As a result, Google's new licensing move is especially important in order to maintain a good relationship with publishers. Is Google Stock a Good Buy? Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 30 Buys and nine Holds assigned in the past three months. Furthermore, the average GOOGL price target of $206.51 per share implies 8% upside potential.
