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.
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