GOOGL
Alphabet Inc
TMT
07/15/2016
Presented
| Date | 07/12/2016 |
| Price | $36.63 |
| Market Cap | $512.25B |
| Ent Value | $463.45B |
| P/E Ratio | 30.86x |
| Book Value | $9.00 |
| Div Yield | 0% |
| Shares O/S | 13,986.22M |
| Ave Daily Vol | 38,622,740 |
| Short Int | 0.70% |
Current
| Price | $165.46 |
| Market Cap | $2,036.81B |
| Alphabet, Inc. is a newly founded holding company for the Google group of businesses. Under the new operating structure, its main Google business will include search, ads, maps, apps, YouTube and Android and the related technical infrastructure (the 'Google business'). Businesses such as Calico, Nest, and Fiber, as well as its investing arms, such as Google Ventures and Google Capital, and incubator projects, such as Google X, will be managed separately from the Google business. The new legal and operating structure will be introduced in phases over the coming months and when finalized, Google anticipates that it will result in two reportable segments for financial reporting purposes, with the Google business presented separately from other Alphabet businesses taken as a whole. Accordingly, Alphabet will report its results under this new structure commencing with its Q4 earnings release and its Annual Report on Form 10-K for the period ending December 31, 2015. The company was founded on 2nd October, 2015 and is headquartered in Mountain View, CA. |
Please note, Alphabet Inc. (GOOGL) reverse split on 07/18/2022 at a ratio of 20:1. The presented data has been updated to account for the change, however, the text of the note may refer to data based on the original presented price of $732.51.
Publicly traded companies mentioned herein: Alphabet Inc (GOOGL), Yahoo! Inc (YHOO)
Highlights
Alphabet’s shares are up 30% since July 2015; however, upon closer examination of GOOGL’s recent performance it is clear that the stock has not moved much since breaking the $700 level in late October, 2015. The presenter is long at this time (~$730) and sees the risk/ reward as attractive because an accelerating top line - driven by strong core (Google) business trends - should push shares higher and “margins finally appear to have stabilized after 3 - 4 years of declines”. He added that Alphabet has made some positive moves over the past year and a half, including: core business decisions such as adding the third link to mobile; and bringing Ruth Porat in as the new CFO. GOOGL now faces tough comps in the back half of 2016, and in Q1 2016 core earnings disappointed - despite revenue and profit continuing to rise. The stock’s subsequent sell-off has created an attractive entry point. GOOGL is a $500 billion market cap company and the presenter does not see people as “massively negative”; however, he does believe there is more skepticism than there has been around the company and the risk/ reward setup for “a great company at a reasonable multiple” is attractive for the near- and intermediate-term.
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