Alphabet Inc (GOOG) May Become World’s Most Valuable Company After Monday’s Earnings

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Apple has remained at the top of this list of the world’s most valuable companies for quite some time now, but Alphabet Inc (NASDAQ:GOOG) may be about to challenge them for that position. While Apple’s market cap sits at just over $521 billion, Alphabet Inc (NASDAQ:GOOG) is worth approximately $508 billion. The stocks are both going in oppostie directions and with a solid earnings beat on Monday, Alphabet Inc (NASDAQ:GOOG) could easily surpass the Apple in market value.

Shares of Alphabet would only need to rise approximately 2.5% or $18, while shares of Apple remain steady, in order for such a feat to take place. While Alphabet could certainly surpass Apple next week, from an earnings standpoint the two companies are not even close. While Apple is currently trading at a PE of under 10, Alphabet’s PE is currently north of 34. If Apple were to trade at the same multiple as Alphabet, their share price would be over $320. This just go to show how two companies can be valued by the same market completely differently.

The stock closed at $730.96 during the last trading session. It is up 35.91% since June 24, 2015 and is uptrending. It has outperformed the S&P500 by 44.77%.

From a total of 28 analysts covering Google Inc. (NASDAQ:GOOG) stock, 24 rate it a “Buy”, 0 a “Sell”, and 4 a “Hold”. This means that 86% of the ratings are positive. The highest target price is $900 while the lowest target price is $700. The mean of all analyst targets is $826 which is 13.00% above today’s ($730.96) stock price. Google Inc. was the topic of 38 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Pacific Crest maintained shares on December 21 with a “Overweight” rating. Pivotal Research maintained shares with a”Hold” rating and a $740 target share price in their report from an October 23. UBS maintained GOOG stock in a recent report from October 23 with a “Buy” rating. Credit Suisse maintained the rating on October 23. Credit Suisse has a “Outperform” rating and a $850 price target on shares. Finally, Needham maintained the stock with a “Buy” rating in a report they issued on an October 23.

The institutional sentiment decreased to 0.67 in Q2 2015. It’s down 0.53, from 1.2 in 2015Q2. The ratio dropped, as 445 funds sold all their Alphabet Inc shares they owned while 412 reduced their positions. 109 funds bought stakes while 464 increased their total positions. Institutions now own 203.36 million shares which is 12.54% less than the previous share count of 232.53 million in 2015Q2.

Ancient Art L.P. holds 22.07% of its total portfolio in Alphabet Inc, equating to 213,887 shares. Jgp Global Gestao De Recursos Ltda. owns 38,052 shares representing 12.71% of their total US portfolio. Moreover, Cantillon Capital Management Llc has 11.84% of their total portfolio invested in the company, equating to 888,378 shares. The California-based Dalal Street Llc has a total of 11.16% of their portfolio invested in the stock. Glade Brook Capital Partners Llc, a Connecticut-based fund reported 50,799 shares owned.

Since February 25, 2015, the stock had 0 insider buys, and 30 insider sales for a total of $391.26 million in net activity. Brin Sergey sold 16,670 shares worth $10.24 million. Page Lawrence sold 16,670 shares worth $10.34 million. Doerr L John sold 5,269 shares worth $3.33 million. Drummond David C sold 5,290 shares worth $3.39M. The insider Mather Ann sold 6,000 shares worth $3.48 million.

Alphabet Inc is a collection of Companies. The company has a market cap of $508.63 billion. The Company’s collection include Calico, Google’s health and longevity effort; Nest its connected home business; Fiber, its gigabit internet arm; and its investment divisions such as Google Ventures and Google Capital, and incubator projects, such as Google X. It has 34.38 P/E ratio. These will be managed separately in Alphabet.

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