Alphabet stock has risen 67% and posted strong financial results, but future hinges on lawsuits.

From Nasdaq: 2024-07-15 04:55:00

Alphabet (NASDAQ: GOOGL) investors have seen a 67% rise in stock to $191.75 from $115 last year, driven by strong financial performance. Operating margin improved to 32%, with quarterly net income hitting $23.7 billion. The company’s first dividend of $0.20 represents a 0.4% yield.

Despite excellent results, Alphabet’s future hinges on two critical antitrust lawsuits. One targets Google Search and the other its digital advertising business. With an overweight rating and a median share price of $195.25, analysts don’t see much upside from the current $188 price. Risk-tolerant investors might want to wait for lawsuit outcomes before buying.

Alphabet’s success is underpinned by growth in advertising, Google Cloud, and subscription services. Advertising revenue hit $61.7 billion, Google Cloud brought in $9.6 billion, and other services reached $8.7 billion. However, potential risks from antitrust lawsuits and limited upside as per analyst consensus may influence investment decisions.



Read more at Nasdaq: Is Alphabet Stock a Buy?