Stock Market Analysis Accounting, Finance, SPSS Essay

Stock Market Analysis: Alphabet Inc.
Student Name
Institutional Affiliation
Stock Market Analysis: Alphabet Inc.
Alphabet Inc. is better known by its former name, Google Inc. The change took place in 2015 as a way of reorganizing the company and take care of businesses beyond search. The company trades in NASDAQ and has two ticker symbols. These are GOOGL for A shares and GOOG for C shares. Choosing Alphabet was influenced by the desire to analyze one of the technology conglomerates in the world. The company has the world’s largest search engine, the popular video streaming site YouTube and the Android operating system among others. Further, Google remains one of the most successful stocks in this century. In August 2014, the shared launched at just over $50 a share and have reached $1,518.73 Class A per-share value as of 14 February 2020.
The technology space has attracted various companies wishing to take advantage of the recent developments. While Alphabet is a successful company, it continues to face competition from other technology companies. The top competitors for the company include Facebook, Apple, Amazon.com, and Microsoft. According to a report by Statista (2019), these competitors had a market value in billion U.S. dollars of 516.4, 961.3, 916.1, and 946.5 respectively. With Alphabet with a market value of $863.2, Apple, Microsoft, and Amazon.com are more valued that the company. Alphabet is growing very fast with its stock market value on the brink of hitting $1tn. The success lies in the ability of Alphabet to position itself as one of the biggest beneficiary of the global advertising (Waters, 2020). The company has also taken steps to diversify its future earnings by venturing into ambitious projects like driverless cars. In the third quarter of 2019, Alphabet reported a profit of $7.1 billion, which translates to $10.12 per share. While the profit appears remarkable, it was below the $8.7 billion expected by analysts (Paul, 2019). The long-term ambitious projects like self-driving cars and others had an increase revenue of $155 million but with a growing loss of $941 million. While Alphabet and other major tech giants are subject to antitrust investigations in both the U.S. and the E.U, the probes do not seem to affect their stock.
As of February 18, 2020, Alphabet’s share price was $1518.73 class A per share. The company’s Earnings per share for the trailing twelve months ended in December 2019 was $49.18. The price-to-earnings ratio (P/E ratio) is $1518.73/$49.18 which comes to 30.88. The P/E ratio has various implications. Firstly, it means that the company is earning money, since there is a number to put in the denominator. Additionally, the high ratio indi...