Alphabet announced their quarterly earnings yesterday afternoon. Which were capped by $22.4 billion in revenue, and that was up from $18.6 billion in the same period a year ago. Needless to say, analysts and Wall Street as a whole, are pretty happy with the results that the Mountain View company announced yesterday. Many analysts have their rating set at “outperform” or “buy”, and their price targets are well above $1,000 as well. Definitely a good thing for Alphabet, after having such a successful quarter. A quarter in which they didn’t announce their new Pixel smartphones (that was on October 4th, which was the beginning of the fourth quarter).
Deutsche Bank set their price target to $1,080, and stated that “while still nascent, Play, Cloud and Hardware are providing a nice addition to the bull case on top of the core ads business.” They also mentioned that given Alphabet’s valuation, they think that they’ll see outperformance into 2017. Credit Suisse, meanwhile has put their price target at the highest, $1,120. And they stated that “Google reported a top and bottom line beat with currency-neutral revenue growth of 23% – the contributing factors were once again improvements in mobile search and YouTube for the Web Sites segment, as well as Google Play and Cloud for the Other segment.” They are also expecting the benefits from new ad product rollouts will help the company continue to perform well.
Other analysts like Macquarie, B. Riley, Citi, Cowen, Jeffries and CFRA Research, were all ecstatic about Alphabet’s earnings for the quarter. And said similar things to what Deutsche Bank and Credit Suisse had to say. Alphabet is likely going to have an even better quarter to finish out the year. Typically the fourth quarter is the strongest quarter of the year, primarily due to the fact that it’s the holiday season. And with Google now being a hardware company (with Pixel, Pixel XL, Google Home, Google WiFi and Daydream View), it could become a huge quarter for the entire company. Alphabet typically hits analysts expectations or exceeds it. So it’s definitely a good stock to invest into, especially after their recent earnings call.