Tech Giant Alphabet Continues to Thrive
Alphabet, the parent company of Google, is a dominant force in the tech industry, boasting strong positions in search, advertising, cloud computing, artificial intelligence, and more. Its core search and ad businesses are the driving force behind its success, while its YouTube business and other ventures also contribute significantly to its revenue.
A Leader in Innovation
Recently, Alphabet announced significant improvements to its AI tools and a breakthrough in error reduction with its Willow quantum chip. This commitment to innovation has helped the company stay ahead of the curve, despite regulatory challenges.
Impressive Financial Performance
Alphabet’s third-quarter revenue saw a 15% year-over-year increase to $88.3 billion, with search, YouTube ads, and subscription services generating $76.5 billion of that total. Its cloud business also experienced a 35% rise in revenue, largely due to AI. Quarterly per-share earnings jumped 37% to $2.12, beating the consensus estimate of $1.84.
Institutional Support Drives Growth
MAPsignals data reveals that Big Money investors are heavily invested in Alphabet’s future, with strong institutional demand driving the stock’s 41% increase this year. The company’s cloud business, in particular, has seen significant growth, thanks to AI.
A Fundamental Story Worth Exploring
Alphabet’s strong sales and earnings growth, combined with institutional support, make it an attractive investment opportunity. The company’s 3-year sales growth rate stands at 19.9%, while its 3-year EPS growth rate is an impressive 33.5%. EPS is estimated to increase by 12.2% this year, making it a compelling choice for investors.
A Track Record of Success
Alphabet has consistently demonstrated strong financial performance, making it a top-rated stock at MAPsignals. The company’s unusual buy pressure and growing fundamentals have earned it a spot in the Top 20 report multiple times in the last year.
The Power of Money Flows
Tracking unusual volumes reveals the impact of Big Money demand on stock prices. Alphabet’s rally is a testament to the power of institutional support, making it a stock worth considering for a diversified portfolio.
Disclosure
The author owns GOOGL in personal and managed accounts at the time of publication. If you’re a Registered Investment Advisor (RIA) or a serious investor, learn more about the MAPsignals process to take your investing to the next level.
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