[AAP] – Google’s reshaping under newly formed parent Alphabet gives the tech giant more ability to focus on its core business, while offering startup-like flexibility to long shot, trailblazing projects. The announcement of the new corporate structure was generally welcomed in Silicon Valley and on Wall Street, where Google shares closed with a robust gain of 4.3 per cent at $ US660.78. Alphabet will be the corporate parent, overseeing the Google unit for search and a handful of other operating firms created for projects in health, internet delivery, investment and research.
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Google Inc. (GOOG), with a current market cap of $ 452.99B, opened this morning at $ 667.42.
Looking at the stock, its one day range is $ 654.27 to $ 674.90 with its 52-week range being $ 486.23 to $ 678.64.
GOOG shares are currently priced at 21.91x this year’s forecasted earnings, which makes them relatively expensive compared to the industry’s 13.08x earnings multiple.
Consensus earnings for the current quarter by the 33 sell-side analysts covering the stock is an estimate of $ 7.21 per share, which would be $ 7.21 worse than the year-ago quarter and a $ 0.23 sequential increase. Furthermore, our analysis shows the full-year EPS estimate to be $ 28.93, which would be a $ 3.79 improvement when compared to the last year’s annual results.
The quarterly earnings estimate is based on a consensus revenue forecast of the current quarter of $ 18.55 Billion. If realized, that would be a 40.85% increase over the year-ago quarter.
Recently, Susquehanna Initiated GOOG at Positive (Aug 11, 2015). Previously, Pivotal Research Group downgraded GOOG from Buy to Hold.
With the above information in mind, readers should note that the average price target is $ 645.00, which is 3.36% below where the stock opened this morning.
Summary (NASDAQ:GOOG): Google Inc., a technology company, builds products and provides services to organize the information. The company offers Google Search, which provides information online; Google Now that offers information to users when they need it; AdWords, an auction-based advertising program; AdSense, which enables Websites that are part of the Google network to deliver ads; DoubleClick Ad Exchange, a marketplace for the trading display ad space; and other advertising platforms, such as AdExchange and AdMob. It also offers YouTube that offers video, interactive, and other ad formats; Android, an open source mobile software platform; hardware products, including Chromebook, Chrome OS devices, Chromecast, and Nexus devices; Google Play, a cloud-based digital entertainment store for apps, music, books, and movies; Google Drive, a place for users to create, share, collaborate, and keep their stuff; and Google Wallet, a virtual wallet for in-store contactless payments. In addition, the company provides Google Apps, which include Gmail, Docs, Slides, Drawings, Calendar, Sheets, Forms, Sites, etc. for people to work anywhere, anytime, on any device without loss of security or control; Google Maps Application Programming Interface; and Google Earth Enterprise, a software solution for imagery and data visualization. Further, it offers Google+ to share things online with people; Groups to create mailing lists and discussion groups; Blogger to share the life online with a blog; and Hangouts for group conversations. Additionally, Google provides App Engine, a platform as a service offering; Google Cloud Storage; Google BigQuery for real time analytics; Google Cloud SQL to store and manage data using a relational MySQL database; Google Compute Engine, an infrastructure as a service platform; and Google Developers to find all Google developer documentation, resources, events, and products. Google Inc. was founded in 1998 and is headquartered in Mountain View, California.