Taking a look at the most recent 8-K filing, we can see the company’s latest numbers to begin formulating an opinion. On a side note, if you are currently invested in Google, then Alphabet, Inc. may not be a candidate because it will not be a good diversification addition. Revenues were up 22% year on year and 24% on a constant currency basis for the fourth quarter of 2016, which was credited to mobile search and YouTube. Overall, the numbers are well, which is to be expected, but now let us take a look at the chart and see how price is moving.
Taking a look at the daily chart, we can see that price is trending upward and that should come at no surprise. Such a well-run company should be doing exactly what the chart is doing. Nothing is standing out as a potential red flag and price is comfortably above the 50 and 200 moving averages. Going forward, it could be a useful tool to use the moving averages as support because if the trend is still bullish, then those could be very reliable areas to plan for entries.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Alphabet income statement, its balance sheet, and the statement of cash flows. Potential Alphabet investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Alphabet investors may use each financial statement separately, they are all related. The changes in Alphabet's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Alphabet's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Alphabet
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Alphabet performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Alphabet shares is the value that is considered the true value of the share. If
the intrinsic value of Alphabet is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Alphabet. Please read more on our
fundamental analysis page.
How effective is Alphabet in utilizing its assets?
Alphabet Inc Class A reports assets on its Balance Sheet. It represents the amount of Alphabet resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Alphabet aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Interactive Media & Services space. To get a better handle on how balance sheet or income statements item affect Alphabet volatility, please check the breakdown of all its
fundamentals.
Are Alphabet Earnings Expected to grow?
The
future earnings power of Alphabet involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Alphabet factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Alphabet
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Alphabet
expected earnings.
Alphabet Gross Profit
Alphabet Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Alphabet previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Alphabet Gross Profit growth over the last 10 years. Please check Alphabet's
gross profit and other
fundamental indicators for more details.
What is driving Alphabet Investor Appetite?
Risks
Just like most companies in the technology field, there are many different risks that could adversely affect the company. For a full list, check out the latest 10-K report, but for now, here are a few that you should keep in mind while completing your research. First, the company faces intense competition and a failure to innovate could have an adverse affect on the company. Being a leader in the tech industry, this certainly could not be truer as other companies look to take over as leader. Secondly, the company has to make their new products work because if they are unable to stay ahead of trends, this could end up hurting the company and stock price, which could turn away potential investors.
Conclusion
Between Google and Alphabet Inc., you should be able to find one that fits the needs of your portfolio. Both are healthy and provide many different tools that people use on a daily basis. Still be sure to compare this with others in the industry and ensure this is a good fit for your portfolio. If you still have questions, be sure to consult an investing professional as they can point you in the right direction.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Alphabet Inc Class A. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com