Behind Alphabet’s Recent Stock Performance
Shareholder returns and stock trends
On July 18, Alphabet (GOOG) stock yielded a return of 1.26% on a volume of 1.15 million shares to close at ~$965.40. The stock has generated investor returns of 2.7% in the trailing-one-month period and 31.6% in the trailing-12-month period. Its share price has gained 3.8% in the trailing-five-day period.
By comparison, Twitter (TWTR), Alibaba (BABA), PayPal (PYPL), and Yelp (YELP)—peer companies in the Internet sector—have generated returns of 7.1%, 86.0%, 51.5%, and 10.9%, respectively, in the trailing-12-month period.
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Relative strength index and moving averages
For the past 14 days, Alphabet reported an RSI (relative strength index) score of 64, compared with 79, 74, 72, and 74 recorded by Twitter, Alibaba, PayPal, and Yelp, respectively, for the same period. RSI measures the speed and change at which prices move.
Alphabet stock was trading at $965.40, which was 7.75% above its 100-day moving average of $896, 2.05% above its 50-day of $946, and 3.03% above its 20-day moving average of $937.
As of July 18, 2017, Alphabet was the largest Internet player in terms of market capitalization globally at ~$673.8 billion. Twitter’s market cap was ~$14.8 billion, compared with Alibaba’s ~$392.2 billion, PayPal’s ~$71.4 billion, and Yelp’s ~$2.7 billion, respectively.
Of the eight analysts covering Alphabet, seven have given it a “buy” recommendation, while none has recommended a “sell,” and one has recommended a “hold.” The analysts’ stock price target is $1042.63, and the median price target is $1042.50.
Alphabet is now trading at a discount of 7.4% to its median target.
Alphabet has $92.5 billion in cash on hand. Its price-to-cash-flow and price-to-free-cash-flow calculate to ~18.0x and ~24.4x, respectively. For the trailing 12 months, the company’s EV-to-cash-flow was ~15.5x, while its EV-to-free-cash-flow was ~21.2x.