Alphabet Inc. Beats Earnings Estimates, Analysts Remain Optimistic
Alphabet Inc., the parent company of Google, has reported strong earnings, beating analyst expectations. Despite a slight dip in its google stock price post-announcement, many analysts remain optimistic about the tech giant's future prospects.
Alphabet's earnings per share (EPS) came in at $1.89, surpassing estimates by $0.04, on revenue of $84.7 billion, which also topped expectations. This 13.6 percent year-over-year increase in earnings reflects the company's robust performance. However, YouTube ad sales of $8.66 billion fell short of the expected $8.95 billion.
The stock initially reacted negatively, dropping by two percent in after-hours trading. This decline, however, is likely due to profit-taking rather than a reflection on the reported numbers. Many analysts, including those at BÖRSE ONLINE, maintain a 'buy' recommendation, with a price target of 200 euros. On average, analysts predict a 6.8 percent upside for Alphabet's stock, with some firms like Goldman Sachs raising their targets. Some analysts even see the recent sell-off as a potential buying opportunity in the stock market.
Despite the temporary stock dip, Alphabet's strong earnings and the optimism from analysts suggest a positive outlook. The company's CEO, Sundar Pichai, and other executives may also benefit from the stock's price development, given their direct and indirect positions in the company.
