Alphabet Shares Trading Higher After Earnings
By Michael Dabaie
Shares of Google parent Alphabet Inc. were up in Friday
afternoon trading after quarterly earnings.
Class C shares were up 11% to $1,251.88, while Class A shares
were up 10.4% to $1,253.93. Volume was heavier than average.
The company reported second-quarter revenue of $38.9 billion, up
from $32.7 billion in the year-ago period and adjusted EPS of
$14.21, up from $11.75 a year earlier.
A number of analysts raised their Alphabet price target.
Raymond James raised its target to $1,360 from $1,300 and
maintained its rating at Outperform. "We maintain our Outperform
rating and $1,360 price target given solid advertising growth
(mobile search/YouTube), increasing Google Cloud momentum, and an
attractive valuation," Raymond James said.
"While market share remains small today, we believe
Hardware/Cloud could be significant value creation drivers
long-term," the Raymond James note said.
Wedbush raised its price target to $1,500 from $1,350 while
maintaining its Outperform rating. "We expect revenues and profit
to continue to grow for the foreseeable future. Google search
provides advertisers with an outstanding targeting mechanism with
its ubiquitous search engine, has an industry leading video site in
YouTube, is dominant with its Google Play store and has been
consistently growing its cloud business," the Wedbush note
The results showed stability in core Sites ad revenue and likely
acceleration in Google Cloud Platform "which along with other
significant growth opportunities suggest the potential for solid
revenue and profit growth for the foreseeable future," Andy
Hargreaves, equity research analyst at KeyBanc Capital Markets,
said in a note, raising the price target to $1,516 from $1,430.
SunTrust Robinson Humphrey boosted its price target to $1,400
from $1,325 and reiterated its Buy rating. Credit Suisse raised its
target to $1,500 from $1,400.
President Donald Trump tweeted Friday morning "There may or may
not be National Security concerns with regard to Google and their
relationship with China. If there is a problem, we will find out
about it. I sincerely hope there is not!!!"
Earlier this week, Treasury Secretary Steven Mnuchin said in an
interview with CNBC he and Mr. Trump have found no national
security concerns about work that Google is doing in China.
Google has said previously that it doesn't work with the Chinese
Write to Michael Dabaie at email@example.com
(END) Dow Jones Newswires
July 26, 2019 13:55 ET (17:55 GMT)
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