Home Stock Is it too late to buy Alphabet shares after topping Q3 expectations?

Is it too late to buy Alphabet shares after topping Q3 expectations?


On Wednesday, Alphabet Inc. (NASDAQ:GOOG) shares edged slightly lower after releasing its most recent quarterly results. The company announced its fiscal third-quarter revenue and earnings Tuesday after markets closed, outperforming analyst estimates.

Alphabet posted FQ3 GAAP earnings per share of $27.99, beating the consensus for Street expectations of $23.83. On the other hand, its quarterly revenue grew by a whopping 41% from the same quarter a year ago to $65.12 billion, $1.89 billion ahead of the consensus for Street estimates.

Google Services continued to account for the majority of revenue with $59.88 billion, while Google cloud chipped in with just under $5 billion.

Alphabet offers exciting growth

From an investment perspective, Alphabet shares offer an exciting growth outlook, with analysts expecting earnings to grow by more than 72% this year. In addition, they also expect the search engine giant’s EPS to grow at an average annual rate of 24.41% over the next five years.

Investors will have an opportunity to capitalize on Alphabet’s exciting growth by investing at reasonable trailing 12-month and forward P/E ratios of 37.23 and 26.36, respectively.

Therefore, given Alphabet’s market-beating FQ3 results, it could be time to buy the stock.

Source – TradingView

Technically, Alphabet shares seem to be trading within an ascending channel formation in the hourly chart. However, the stock has recently pulled back to find support at the 100-hour moving average, creating room for a potential rebound.

Therefore, with shares yet to reach the overbought conditions of the 14-hour RSI, investors could target profits at about $2,853, or higher at $2,910. On the other hand, if the pullback continues, GOOG could find support at $2,736, or lower at $2,677.

Time to buy the rebound?

In summary, with Alphabet shares pulling back nearly 3% over the last five trading sessions, Tuesday’s after-market earnings and revenue beat could be the perfect catalyst for a rebound.

Moreover, given GOOG’s exciting growth and valuation multiples, it may be best to buy the stock before the price advances further.

The post Is it too late to buy Alphabet shares after topping Q3 expectations? appeared first on Invezz.

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