Analysts Like Alphabet Stock Heading Into Tuesday’s Earnings Report


GOOG stock - Analysts Like Alphabet Stock Heading Into Tuesday’s Earnings Report

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As social media companies go, Alphabet (NASDAQ:GOOG,NASDAQ:GOOGL) has deflected much of the harm inflicted by Apple’s (NASDAQ:AAPL) privacy changes. Unfortunately, the same can’t be said for some of its competitors. Nevertheless, it is a big reason why analysts remain upbeat about GOOG stock. Several analysts have recently commented on Google’s strength in digital advertising in the first quarter relative to other social media businesses, such as Meta Platforms (NASDAQ:FB) and Snap (NYSE:SNAP). For this reason, Wall Street is expecting a solid report from Alphabet on Tuesday. It is also why I feel GOOG stock remains an excellent long-term buy.

In my last commentary about Alphabet in mid-April, I suggested that its stock would benefit from the $9.5 billion it is spending on its U.S. offices and data centers in 2022. The company’s first-quarter (Q1) 2022 report should tell us more about its plans for the year ahead. Analysts estimate it will earn $25.60 a share from $56.1 billion in revenue, excluding traffic acquisition costs. “Near term, we are incrementally constructive on Alphabet and Snap and marginally cautious on Meta and Pinterest,” Rohit Kulkarni of MKM Partners said about Alphabet earlier in April. 

Cowen (NASDAQ:COWN) analyst John Blackledge believes Alphabet will report healthy numbers on Tuesday due to solid gains from Google Shopping and Google Search. He has a $3,300 target price on the stock. Moreover, at boutique research firm Monness, Crespi, Hardt & Co., analyst Brian White believes the company will continue to benefit from both digital advertising and its cloud business. As a result, he has a Buy rating and a $3,850 target price on its stock. Lastly, Goldman Sachs recently included Alphabet in its list of 50 stable growth stocks to own from the Russell 1000 Index as the U.S. economy goes from 6% growth in 2021 to half that in 2022 and even less in 2023. reported:

“Stable stocks typically trade with a valuation premium to the market, but the premium today is surprisingly small given concerns about Fed tightening and potential recession.”

With 41 out of 50 analysts rating GOOG stock as a Buy, I would be shocked if Alphabet didn’t deliver the goods on Tuesday. It remains one of my favorite long-term tech buys. 

On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.

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