Long-Term Outlook Remains Favorable: Alphabet Inc. (GOOGL)

SBUX Stock
SBUX Stock

Even in the midst of global uncertainty, tech behemoth Alphabet Inc. (NASDAQ: GOOGL) can provide investors with greater assurance than its closest competitors. The key benefit of Alphabet is its consistent double-digit revenue growth.

Even though Alphabet’s market valuation has already surpassed $1 trillion, the firm has been able to continue double-digit growth. Revenue rose by 5% to $75.3 billion in the most recent reporting quarter, but it increased by 41% to more than $257 billion for the whole year. In the quarter and at the end of the year, the company’s net income grew by 13% and 91%, respectively.

A rising advertising business and the Google Cloud division, which increased by 36% and 45% YoY, respectively, drove the good result. Alphabet had about $21 billion in cash at the end of the previous quarter, giving them plenty of flexibility for investments and acquisitions.

Alphabet outperforms even its closest competitors in terms of sales and earnings growth, including technological firms Meta Platforms, Amazon, Apple, and Netflix. The FAANG index is made up of all of these firms (along with Alphabet). The yearly sales and profit growth of Alphabet (41% and 91%, respectively) outperforms the FAANG average of 29% sales growth and 63% profit growth.

The upward trend for Alphabet is unlikely to slow down in 2022. According to Wall Street experts, the company’s sales would increase by 18% to more than $303 billion. Earnings per share are expected to be approximately $115, up only 3% from the previous year.

However, owing to falling indices, GOOGL stock is presently trading over 25% below its 52-week highs. On April 27, GOOGL was trading at $2,285.89.

When focusing on technical inventory assessment, traders and investors may also opt to research the ATR or Average True Range. Alphabet Inc’s (GOOGL) 14-day ATR is at 78.20. The 52-week high price is $3030.93, while the 52-week low price is $2193.62.


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