Meta and Alphabet Stocks Surge, Valuations Reach $1.6 Trillion and $3.7 Trillion Respectively
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Stock Performance: Meta Platforms' shares have risen 13% year-to-date, bringing its market value to $1.6 trillion, while Alphabet's shares surged 64%, reaching a valuation of $3.7 trillion, indicating robust market performance for both companies.
- Hedge Fund Investments: Three top hedge fund managers increased their stakes in Meta and Alphabet in Q3, with Israel Englander adding 793,500 shares of Meta and 2.2 million shares of Alphabet, reflecting strong confidence in both stocks.
- AI-Driven Growth: Meta is leveraging AI to enhance ad effectiveness, with expected earnings growth of 17% annually over the next three years, making the current P/E ratio of 29 appear reasonable, while analysts set a target price of $842 per share, implying a 27% upside.
- Cloud Market Share: Alphabet's cloud business gained 2 percentage points in market share over the past two years, with a 34% sales increase in Q3, and revenue growth is projected to accelerate to 44% by 2026, further solidifying its leadership in the cloud computing sector.
GOOGL
$314.35+Infinity%1D
Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOOGL is 312.00 USD with a low forecast of 236.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
38 Analyst Rating
31 Buy
7 Hold
0 Sell
Strong Buy
Current: 309.780
Low
236.00
Averages
312.00
High
350.00
Current: 309.780
Low
236.00
Averages
312.00
High
350.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
