Alphabet’s AI, Quantum Breakthroughs Drive Gains

Alphabet is a technology juggernaut with strong positions in search, advertising, cloud, AI, and more. Its search and ad businesses are the core. But GOOGL’s YouTube business and others are big revenue drivers too. The company recently announced AI tool improvements and error reduction breakthroughs with its Willow quantum chip. While regulatory headwinds persist, GOOGL’s varied businesses help it maintain its growth trajectory.

As for financials, GOOGL’s third-quarter revenue jumped 15% year-over-year to $88.3 billion. Search, YouTube ads, and subscription services generated $76.5 billion of that total. The company’s cloud business generated $11.4 billion in revenue, a 35% rise largely due to AI. Quarterly per-share earnings jumped 37% to $2.12, beating the consensus estimate of $1.84.

It’s no wonder GOOGL shares are up 41% 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

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 +12.2%.

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 shares higher:

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.