Alphabet's stock has outperformed the Nasdaq-100 Technology Sector index, with analysts predicting a 30% earnings increase.

From Nasdaq: 2024-06-30 04:55:00

Alphabet’s share prices have outperformed the Nasdaq-100 Technology Sector index over the past three years, with gains of 51% compared to 26% for the index. Despite this, investors expect more from the search engine leader due to new catalysts emerging.

Alphabet experienced revenue growth of 10% in 2023, with compound annual growth of 19% between 2020 and 2023. Although it faced setbacks in the AI space, the company has seen a brighter start in 2024, with revenue increasing 16% in the first quarter.

Alphabet is focusing on AI tools for advertising, leading to improved returns for advertisers. Cloud revenue increased 28% in the first quarter to $9.6 billion, with the company adding 1,000 new products to Google Cloud recently.

Analysts predict a 30% increase in Alphabet’s earnings for 2024, potentially accelerating over the 27% growth from the previous year. With a conservative earnings multiple, Alphabet’s stock price could jump to $275 if earnings increase to $9.82 per share.

Investors looking for an AI stock with growth potential should consider Alphabet. The Motley Fool Stock Advisor analyst team has identified 10 stocks expected to produce significant returns, and investing in Alphabet may lead to strong gains over the next three years.



Read more at Nasdaq: Where Will Alphabet Stock Be in 3 Years?