Alphabet Delivering “A” Grades for Investors

Alphabet’s search and ad businesses are industry leaders. Similarly, the company’s role in the generative AI boom is gaining momentum. All in all, this positions it for success now and in the future, which makes Big Money investors happy.

The business metrics are pleasing too. GOOGL’s first-quarter revenue jumped 15% year-over-year to $81 billion on the back of ad and cloud business increases. It also sports a 40% operating margin for its Google Services business and owns a 91% share of the global search market.

It’s no wonder GOOGL shares are up 11% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Big Money Buying Alphabet Shares

Institutional volumes reveal plenty. In the last year, GOOGL has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in GOOGL shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Alphabet.

Alphabet Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, GOOGL has had strong sales and earnings growth:

• 3-year sales growth rate (+19.9%)
• 3-year EPS growth rate (+33.5%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +13.4%.

Now it makes sense why the stock has been powering to new heights. GOOGL has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Alphabet has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when GOOGL was a top pick…sending the share price up:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Alphabet Price Prediction

The GOOGL rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author owns GOOGL in personal and managed accounts at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.