So Alphabet (you know, Google’s fancy parent company) just casually outperformed the entire stock market yesterday, and honestly? We’re not even surprised anymore.
The stock closed at $255.24, up 1.15% for the day. Now, that might not sound like much until you realize the S&P 500 only managed a measly 0.49% gain. It’s like watching your overachieving friend ace another test while the rest of the class is just happy to pass.
But here’s where it gets interesting (and by interesting, we mean “holy cow, these numbers are wild”). Over the past month, GOOG shares have absolutely demolished expectations with a 25.77% gain. Meanwhile, the broader tech sector managed 6.81%, and the S&P 500 squeezed out 2.99%. It’s giving main character energy, and we’re absolutely here for it.
The earnings picture? Chef’s kiss. Analysts are expecting Alphabet to report $2.32 per share next quarter, which would be a 9.43% jump from last year. Revenue projections are sitting pretty at $84.53 billion – a 13.39% increase that would make any CFO do a little happy dance.
For the full year, we’re looking at potential earnings of $9.98 per share (up 24.13%) and revenue of $334.62 billion (up 13.38%). These aren’t just good numbers; they’re “screenshot and send to your group chat” numbers.
Now, let’s talk valuation because this is where things get spicy. Alphabet is trading at a forward P/E ratio of 25.29, which is basically right in line with its industry average of 25.26. Translation: it’s not wildly overpriced, which is refreshing in today’s market where some stocks are priced like they’re selling unicorns.
The PEG ratio (that’s price-to-earnings-to-growth for those keeping score at home) sits at 1.7, matching the industry average. This suggests the stock is fairly valued relative to its growth prospects – not too hot, not too cold, just right.
What’s driving this momentum? Well, when you’re the company behind Google Search, YouTube, Android, and a growing cloud business, you tend to have multiple ways to print money. The AI revolution isn’t hurting either – every time someone mentions artificial intelligence, Alphabet’s stock price does a little shimmy.
The Zacks Rank system currently has Alphabet at a #3 (Hold), which in investment speak means “this stock is solid, but maybe don’t bet the farm on it right now.” Still, with the Internet Services industry ranking in the top 40% of all sectors, Alphabet is swimming in pretty favorable waters.
Bottom line? Alphabet continues to be that reliable friend who somehow always has their life together. While other tech stocks are having identity crises, Google’s parent company is just quietly dominating multiple industries and making it look effortless.
Whether this momentum continues depends on earnings results and broader market conditions, but for now, Alphabet is giving us all the confidence we wish we had in our own portfolios.