Mountain View, California-based Alphabet Inc. (GOOGL) is a multinational know-how conglomerate holding firm providing varied merchandise and platforms. With a market cap of $2.3 trillion, GOOGL gives web-based search, ads, maps, software program purposes, cell working programs, client content material, enterprise options, commerce, and {hardware} merchandise.
Shares of this web media big have underperformed the broader market over the previous yr. GOOGL has gained 10.8% over this time-frame, whereas the broader S&P 500 Index ($SPX) has rallied practically 14.5%. In 2025, GOOGL’s inventory fell marginally, in comparison with the SPX’s 6.1% rise on a YTD foundation.
Narrowing the main focus, GOOGL’s underperformance can also be obvious in comparison with the Invesco NASDAQ Web ETF (PNQI). The exchange-traded fund has gained about 29.4% over the previous yr. Furthermore, the ETF’s 9.7% features on a YTD foundation outshine the inventory’s marginal returns over the identical time-frame.
Google’s underperformance stems from intensifying AI competitors from startups like OpenAI’s ChatGPT and regulatory challenges, together with a possible breakup that would pressure the sale of Chrome, as the corporate tries to take care of dominance in search with its new AI options.
On Jul. 23, GOOGL shares closed down marginally after reporting its Q2 outcomes. Its EPS of $2.31 topped Wall Avenue expectations of $2.15. The corporate’s income was $96.4 billion, topping Wall Avenue forecasts of $79.5 billion.
For the present fiscal yr, ending in December, analysts anticipate GOOGL’s EPS to develop 23.6% to $9.94 on a diluted foundation. The corporate’s earnings shock historical past is spectacular. It beat the consensus estimate in every of the final 4 quarters.
Among the many 53 analysts protecting GOOGL inventory, the consensus is a “Robust Purchase.” That’s based mostly on 41 “Robust Purchase” scores, 4 “Average Buys,” and eight “Holds.”
The configuration has been constant over the previous three months.
On Jul. 31, Tyler Radke from Citigroup Inc. (C) maintained a “Purchase” ranking on GOOGL with a value goal of $225, implying a possible upside of 19% from present ranges.
The imply value goal of $219.16 represents a 15.9% premium to GOOGL’s present value ranges. The Avenue-high value goal of $250 suggests a notable upside potential of 32.2%.
On the date of publication, Neha Panjwani didn’t have (both immediately or not directly) positions in any of the securities talked about on this article. All data and knowledge on this article is solely for informational functions. This text was initially printed on Barchart.com
