tiprankstipranks
Alphabet Stock Keeps Outperforming; Now What?
Stock Analysis & Ideas

Alphabet Stock Keeps Outperforming; Now What?

Alphabet (NASDAQ: GOOGL) stock delivered impressive returns in 2021, outpacing the broader market averages by a wide margin. Moreover, its stock continues to beat the benchmark despite the recent selling in the market amid the growing list of macro headwinds.

For instance, GOOGL stock is down about 2% this year compared to an almost 10% decline in the Nasdaq 100 Index. 

Now What?

It’s worth noting that retail investors’ (who hold portfolios on TipRanks) confidence in GOOGL stock remains positive, thanks to the ongoing momentum in its business.

Per the TipRanks’ Stock Investors tool, 4.8% of investors added GOOGL stock to their portfolios in the last 30 days. Further, 1.7% of these investors increased their exposure to GOOGL stock in the past seven days.

It’s worth noting that Alphabet benefited from the higher advertiser spending and strength in the cloud business. Taking note of it, Scott Devitt of Stifel Nicolaus sees the ongoing strength in the ad and cloud business to sustain in 2022, which could support Alphabet stock. 

Echoing similar sentiments, Ivan Feinseth of Tigress Financial reiterated his Buy recommendation on GOOGL stock. 

Citing Alphabet’s continued investments in AI (Artificial Intelligence), Feinseth stated that the company’s focus on AI “drives increasing Cloud functionality and customer adoption.” 

Feinseth sees Alphabet continuing to benefit from strong ad spending and cloud revenues. Meanwhile, the analyst believes that the company’s robust balance sheet and cash flows will support its growth initiatives and help in enhancing its shareholders’ value through share buybacks. 

Bottom Line

Despite the current macro concerns, the ongoing digital transformation and the recovery in advertiser spending could support Alphabet’s financials. Further, opportunities in the cloud business and GOOGL’s aggressive investments provide a solid base for multi-year growth. 

Notably, Wall Street analysts are bullish about Alphabet stock. On TipRanks, GOOGL has received 31 unanimous Buy recommendations for a Strong Buy consensus rating. The average Alphabet price target of $3,485.81 indicates 23% upside potential from current levels.

Furthermore, Alphabet stock scores a 9 out of 10 on TipRanks’ Smart Score system, implying that it could outperform the market averages. 

Download the TipRanks mobile app now

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Read full Disclaimer & Disclosure

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles