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Alphabet Inc Class C GOOG

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Stock XNAS Rating as of
$165.29 +1.46 (0.89%)
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As of Delayed Price Closed

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Alphabet: UK Regulators Home In on the Firm’s Ad-Tech Business

Malik Ahmed Khan

We are maintaining our $209 fair value estimate for wide-moat Alphabet after the Competition and Markets Authority, or CMA, the antitrust regulator in the UK, provisionally found that Google used anticompetitive practices in the ad-tech space. The allegations that the CMA has made against Google’s monopolistic behavior in the ad-tech space are quite similar to those made by the Federal Trade Commission in its ongoing ad-tech monopoly case against Google that also alleges the firm has engaged in monopolistic behavior in the ad-tech market.

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Price vs Fair Value

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GOOG is trading at a 89% premium.
Price
$165.29
Fair Value
$562.00
Uncertainty
Medium
1-Star Price
$537.25
5-Star Price
$365.70
Economic Moat
Tctr
Capital Allocation
Lldlclyx

Bulls Say, Bears Say

Bulls

Alphabet’s core advertising business is deeply entrenched in advertising budgets, allowing the firm to benefit from a secular increase in digital advertising spending

Bears

While Alphabet is seeking to diversify its business away from search, text-based advertising remains the largest contributor to the firm’s top line creating a concentration risk.

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Trading Information

Previous Close Price
$163.83
Day Range
$163.83–166.97
52-Week Range
$121.46–193.31
Bid/Ask
$164.73 / $164.80
Market Cap
$2.03 Tril
Volume/Avg
13.6 Mil / 17.8 Mil

Key Statistics

Price/Earnings (Normalized)
23.54
Price/Sales
6.33
Dividend Yield (Trailing)
0.24%
Dividend Yield (Forward)
0.48%
Total Yield
3.37%

Company Profile

Alphabet is a holding company that wholly owns internet giant Google. The California-based company derives slightly less than 90% of its revenue from Google services, the vast majority of which is advertising sales. Alongside online ads, Google services houses sales stemming from Google’s subscription services (YouTube TV, YouTube Music among others), platforms (sales and in-app purchases on Play Store), and devices (Chromebooks, Pixel smartphones, and smart home products such as Chromecast). Google’s cloud computing platform, or GCP, accounts for roughly 10% of Alphabet’s revenue with the firm’s investments in up-and-coming technologies such as self-driving cars (Waymo), health (Verily), and internet access (Google Fiber) making up the rest.
Sector
Communication Services
Industry
Internet Content & Information
Stock Style Box
Large Core
Total Number of Employees
179,582
Website
https://www.abc.xyz

Competitors

Valuation

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Metric
GOOG
META
AAPL
Price/Earnings (Normalized)
 23.5428.0834.67
Price/Book Value
 6.779.1751.98
Price/Sales
 6.339.999.17
Price/Cash Flow
 17.1918.4228.96
Price/Earnings
GOOG
META
AAPL

Financial Strength

Metric
GOOG
META
AAPL
Quick Ratio
 1.902.690.80
Current Ratio
 2.082.830.95
Interest Coverage
 281.77110.19—
Quick Ratio
GOOG
META
AAPL

Profitability

Metric
GOOG
META
AAPL
Return on Assets (Normalized)
 26.65%29.10%32.63%
Return on Equity (Normalized)
 37.68%43.69%165.40%
Return on Invested Capital (Normalized)
 33.14%34.11%63.09%
Return on Assets
GOOG
META
AAPL

Internet Content & Information Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Alphabet Inc Class A
GOOGL
CjdgdxwyzRzd$2.0 Tril
 Meta Platforms Inc Class A
META
LqtghpbyWqzsz$1.4 Tril
 Tencent Holdings Ltd ADR
TCEHY
DdpgyhwztVtzr$517.1 Bil
 Spotify Technology SA
SPOT
KxnkgxrqvYwdp$74.1 Bil
 DoorDash Inc Ordinary Shares - Class A
DASH
PcrjwxgyWhfrc$58.5 Bil
 Baidu Inc ADR
BIDU
FbxqkjhxCvdq$36.3 Bil
 Pinterest Inc Class A
PINS
MmqjdgySblwpcj$22.3 Bil
 Tencent Music Entertainment Group ADR
TME
MwdychtpPdbnvw$21.6 Bil
 Snap Inc Class A
SNAP
XprjkzpBjpy$18.0 Bil

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