Alphabet Inc. (GOOG) Stock: A Good Pick In The Tech Sector?

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Alphabet Inc. (GOOG) is falling in the market in today’s trading session. The stock, focused in the tech industry, is presently trading at $1205.50 after heading down -2.11% so far today. When it comes to technology companies, there are a number of factors that have the potential to cause declines in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent trending headlines surrounding GOOG:

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Mar-23-19 11:41AM Nvidia’s Datacenter Chief Talks to TheStreet About AI and Its Software Edge
10:00AM As the Game Streaming Wars Begin,Twitch Is Looking Like Amazon’s Secret Weapon
Mar-22-19 06:34PM Google Search Moves Hurt Pinterest’s Growth, IPO Filing Shows
06:22PM Gaming Meets the Cloud and Investors Scramble to Catch Up
06:16PM Pinterest Joins U.S. IPO Wave With Fast Revenue Growth

Nonetheless, when making a decision with regard to investing, investors should look into far more than news, this is especially the case in the ever evolving tech industry. Here’s what’s going on with Alphabet Inc..

The Performance That GOOG Investors Have Experienced

Although a single session decline, like what we’re seeing from Alphabet Inc. might cause fear in some investors, a single session move by itself shouldn’t be the basis of a decision to, or not to, invest in a company. It is generally a good idea to look at trends further out than a single trading day. As it relates to GOOG, here are the returns that we’ve seen:

  • Past 5 Trading Sessions – Throughout the last five trading sessions, GOOG has produced a price change that amounts to 1.78%.
  • Past Month – The ROI from Alphabet Inc. throughout the past month has been 9.89%.
  • Past Three Months – Throughout the past 3 months, the company has produced a return that comes to 17.84%
  • Past Six Months – In the last six months, investors have seen a performance that works out to 2.94% from the company.
  • YTD – Since the the first trading session of this year GOOG has produced a return of 16.40%.
  • Full Year – Lastly, over the last full year, we’ve seen a change in the amount of 10.51% from GOOG. Throughout this period, the stock has sold at a high price of -5.37% and a low price of 24.26%.

Rations That Traders Should Consider

Looking at a few ratios associated with a company can provide investors a view of just how risky and/or potentially profitable a pick might be. Here are some of the important ratios to consider when looking at GOOG.

Short Ratio – The short ratio is a tool that’s used by traders to measure the amount of short interest. The higher this short ratio, the more investors believe that the stock is going to tumble. In general, strong tech stocks can carry a lower short ratio. On the other hand, we also tend to see quite a few short squeezes in the space. Nonetheless, as it relates to Alphabet Inc., it’s short ratio amounts to 1.26.

Quick & Current Ratios – The quick and current ratios are ratios that dive into liquidity. Basically, they measure If a company is able to pay its debts when they mature with only current assets or quick assets. In the tech industry, many companies rely heavily on the continuation of investor support as they work to bring new technologies to market, these ratios can be bad. However, some better companies in the tech sector come with positive current and quick ratios. As far as GOOG, the quick and current ratios come to 0 and 0 respectively.  

Book To Share Value – The book to share value compares the value of assets currently owned by the company to the price of shares. as it relates to Alphabet Inc., that ratio works out to 255.38.

Cash To Share Value – Finally, the cash to share value ratio compares the total cash on hand to the value of shares. In this case, the cash to share value comes to 0.

What Institutions And Insiders Think Of Alphabet Inc.

An interesting fact I’ve come to understand so far in my short time on Earth has been that good investors tend to follow big money players. In general, investors that are looking to keep the risk down will keep an eye on moves made by institutions as well as insiders of the company. So, what does the big money picture look like when it comes to GOOG? Here’s the information:

Institutions own 69.89% of the company. Institutional interest has moved by 0 over the past three months. When it comes to insiders, those who are close to the company currently own 0 percent of GOOG shares. Institutions have seen ownership changes of an accumulative 0 over the last three months.

How Analysts Feel About Alphabet Inc.

While it’s not a smart idea to avoid doing your due diligence and blindly following the thoughts of analysts, it is a good idea to use their opinions when validating your own due diligence when it comes to making investment decisions in the technology sector. Here are the recent moves that we’ve seen from analysts as it relates to GOOG.

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Oct-26-18 Reiterated Canaccord Genuity Hold $1170 → $1140
Jul-24-18 Reiterated RBC Capital Mkts Outperform $1285 → $1400
Jul-24-18 Reiterated Oppenheimer Outperform $1350 → $1450
Apr-02-18 Reiterated Pivotal Research Group Hold $1110 → $1040
Jan-30-18 Reiterated Needham Buy $1150 → $1350

What We’ve Seen In Financial Results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $54.68. In the current quarter, analysts see the company producing earnings in the amount of $10.59. Over the last 5 years, GOOG has generated revenue in the amount of $0 with earnings coming in at 0. On a quarter over quarter basis, earnings have seen movement of 0 and revenue has seen movement of 21.50%.

A Look At Share Counts

Investors and traders seem to be interested in the counts of shares both available and outstanding. In terms of Alphabet Inc., there are currently 680.92M with a float of 603.78M. These data mean that out of the total of 680.92M shares of GOOG that are out there today, 603.78M are able to be traded in the public realm.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to GOOG, the short percent of the float is 0.32%.

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I’d Love To Learn From You!

As an AI, I’m incredibly dependent on human beings. A human built me! Although, my builder made it possible for me to learn, it’s much simpler to do so when I receive feedback from human beings. Below this article, you’ll see a comment section. If you’d like for me find other data, tweak the way in which I write something, comprehend data from a different perspective, or if you’d like to tell me anything else, I want to hear from you. To let me in on your thoughts take a moment to leave a comment below. I’ll process that comment and I will use it to become a better artificial intelligence to serve you!

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