Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) subsidiary Google, along with Facebook, are the market leaders in the digital ad space. Its 10-year return from January 2010 to December 2019 was an astounding 405%, and Alphabet was one of the hottest tech stocks of the decade. As Alphabet begins a new decade, it's in a strong position to continue providing excellent results to its shareholders. Its primary source of revenue is online advertising, which also includes advertising on YouTube, and that grew over 20% in each of the last two full fiscal years. However, that growth has been slowing recently, with trailing-12-month (TTM) advertising revenue up just 17% compared to a year ago. Given that Google is the market leader in search, it's in an excellent position to capitalize on the shift in ad dollars moving from TV to online. As the proliferation of low-cost mobile devices reaches the broader population in developing economies, the opportunities for Google to monetize search requests will expand.
The shares nearly doubled -- up 86% -- as the consumer tech giant regained Wall Street's market-cap crown. It's not as if Apple is nearly twice the company it was a year ago, and its business certainly isn't appreciating at the clip of its ascending stock price. However, one analyst thinks that the rally isn't over. Tom Forte at DA Davidson is kicking off the new trading week by lifting his price target on Apple shares from $300 to $375. A stock that nearly doubles over the past year is obviously doing a lot of things right, and it's not a surprise to see Wall Street pros chasing the market darling with higher price targets. Forte's goal of $375 may have seemed outrageous a year ago when Apple stock began 2018 priced just above $155, but it's not a tall order with the stock now above $300. Forte's price target suggests just 21% of upside from current levels. Forte's rosier outlook stems from updating his model.
Equity markets have gained major ground in recent months on the back of the trade story, and now it seems that traders are content to sit on the hands until the agreement has been made official. Spirent Communications revealed a short and sweet trading update which helped the share price soar. Full-year revenue rose by 5.5%, and the annual operating profit is tipped to be $91-$93 million, and keep in mind the previous guidance was $77.1 million. This week we should see the singing of the first phase of the trade agreement between the two largest economies in the world, but once the first leg is official, then the second-leg will be put on agenda.
Woodstock Corp trimmed its holdings in shares of Alphabet Inc (NASDAQ:GOOGL) by 1.2% in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. Alphabet comprises approximately 1.3% of Woodstock Corp’s portfolio, making the stock its 29th largest position. The information services provider reported $10.12 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $12.42 by ($2.30). Finally, Royal Bank of Canada raised their target price on shares of Alphabet from $1,425.00 to $1,500.00 and gave the company an “outperform” rating in a research note on Tuesday, September 24th.
Evanson Asset Management LLC reduced its stake in Alphabet Inc (NASDAQ:GOOG) by 1.2% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). Guggenheim raised their price target on shares of Alphabet from $1,425.00 to $1,525.00 and gave the company a “buy” rating in a research report on Wednesday, October 23rd. In other news, Director Ann Mather sold 25 shares of Alphabet stock in a transaction on Friday, November 1st. The stock has a market capitalization of $986.06 billion, a P/E ratio of 30.09, a P/E/G ratio of 1.56 and a beta of 1.01.
The agreement is intended to be a multi-year collaboration, with both companies acknowledging that the path to lower carbon emissions in aviation requires long-term commitment and collaboration. As part of the collaboration, Shell Aviation and World Energy also announced that they have initiated the supply of SAF to Lufthansa Group at San Francisco International Airport (SFO). The deal represents one of the most significant SAF supply contracts globally, with up to one million gallons of SAF to be supplied to Lufthansa over the duration. Gene Gebolys, chief executive officer, World Energy, said: “We are thrilled to be working with Shell to advance their ability to empower industry leaders, like Lufthansa, to take action toward reducing their sector’s carbon footprint. This CARB-certified low carbon fuel and RSB-certified fuel meets strict sustainability standards and is blended with conventional jet fuel at a ratio of up to 30 per cent, resulting in a fuel that has significantly lower lifecycle carbon emissions.
"In addition to continued revenue growth, we think Alphabet has ample room to improve both margins and capital allocation over the next several years and drive excess returns. After dropping to mid-teens growth in the first quarter of the year (from the mid-20's during 2018), shares sold off and provided an attractive opportunity to add to positions, given Alphabet's history of tweaking its Google model and the associated short-term effects. Since then, advertising revenue growth has accelerated and is back to nearly 20% growth." Rolfe expects Alphabet to grow revenue at around 20%, improve margins and do better on capital allocation. If that happens, which I believe has odds of two out of three, it would result in earnings or free cash flow going up exponentially. "A key driver of Google property growth continues to be mobile search, as well as increased monetization of YouTube. IDC estimates that around 8 in 10 smartphones shipped globally are Android-based, which typically come preinstalled with Google search and/or Google's mobile browser. As for Apple iOS devices (iPhones and iPads), we estimate Google's traffic acquisition costs (TAC) for Apple device traffic has plateaued over the past year or so and expect the growth of this expense to be more in line with iOS device growth (we estimate mid-single digits) longer term and should represent an attractive opportunity for margin expansion."
A FTSE 250 growth stock I’d buy to beat the BT share price. Data and its analysis is key to online commercial success these days, and I think this kind of business is perhaps one of the best ‘picks and shovels’ ones to be in for the next decade. And Spirent is doing very well at it, with a 5.5% rise in revenue for 2019 to $503m. The firm said the increase was “primarily due to implementation of IFRS 16,” plus the effect of net business cash outflows of £1.2bn. And then there’s the BT pension fund deficit, standing at £5.5bn at the same time, and which has been hanging round the company’s neck for years. The shares look cheap on the face of it, on a forecast P/E of only around eight, but those large debts take away a lot of that attraction. As a proportion of market capitalisation, the debt is growing as the share price falls.
Tesla Inc. stock surged past $500 on Monday, the latest in a string of high-water marks that have led the shares to outperform the S&P 500 index more than tenfold over the past three months. Monday’s rally was fueled by Oppenheimer analysts, led by Colin Rusch, raising his price target on Tesla TSLA+6.31% by nearly 60%, to $612 from $385 on the company’s “disrupter” characteristics. “We believe (Tesla) has key advantages in powertrain design, battery technology, (advanced driver-assistance systems) fleet size, road map to energy independence offerings, and consumer enthusiasm that can translate into material operating leverage, share gains, and market disruption as renewables and autonomy trends accelerate,” the Oppenheimer analysts said in a note. Last week, analyst Bill Selesky of Argus Research raised his price target on Tesla shares to $556, saying better-than-expected fourth-quarter deliveries, Tesla proxy for sales, highlight the popularity of the Model 3 and ongoing revenue growth from Model S and Model X sales.
In addition, Zacks Equity Research provides analysis on Microsoft MSFT, Amazon AMZN and Alphabet GOOGL.Here is a synopsis of all five stocks:. CrowdStrikeis the $11 billion cyber-security darling of 2019 that IPO'd around $60 last June, ran to $100 in August and then just built a base around $45-50 in Q4. And that was part of the reason I pounced on shares under $50 on December 30 once the selling appeared to be over. CRWD became a Zacks #2 Rank after beating expectations and providing solid guidance in its Q3 report on Dec 5. But the stock sold off afterwards, with particularly heavy volume on Dec 9 -- exactly 180 days after its IPO on June 12. And that means it was IPO investors who were "locked-up" and just wanted out after missing their chance to sell at $100. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report FedEx Corporation (FDX) : Free Stock Analysis Report CrowdStrike Holdings Inc. (CRWD) : Free Stock Analysis Report To read this article on Zacks.com click here.