Alphabet Inc (GOOG) Ends Year Strong — What Can We Expect in 2016?


While shares of Alphabet Inc (NASDAQ:GOOG) ended the year near all time highs, many investors wonder if the good fortunes of the company will continue into 2016. Alphabet Inc (NASDAQ:GOOG) is becoming more than just an internet company. In fact, over the next decade it’s entirely possible that the Google internet business will make up less than half of the company’s revenue streams.

In order for this to happen Alphabet Inc (NASDAQ:GOOG) needs to invest heavily into their other projects. Project Loon, self-driving cars, life-extension and high speed internet are all project which seem to have many investors quite excited.

While there is little doubt that the search business will not be able to grow at the rates it has been for much longer, it’s YouTube which could become the cash cow of 2016 as the company focuses its efforts on original content. While 2016 looks to be a transition year for Alphabet Inc (NASDAQ:GOOG), into a multifaceted holdings company, they should also continue to see substantial earnings growth as well. Could we see a $1,000 Alphabet stock by year’s end? It’s certainly possible but the stock will need help from the overall market as well. If the market holds up, we could eaily see google approach those prices, especially if some of the new projects take off.

The stock decreased 1.57% or $12.12 on December 31, hitting $758.88. Approximately 1.50M shares traded hands. GOOG shares have risen 42.62% since May 29, 2015 and are currently uptrending. It has outperformed the S&P500 by 45.63%.

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 8.84% above today’s ($758.88) 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 fall, 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 purchases, and 44 sales for a total of $594.51 million in net activity. Brin Sergey sold 16,670 shares worth $10.24M. 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 $3.39 million. 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 $528.45 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 35.69 P/E ratio. These will be managed separately in Alphabet.