Alphabet (GOOGL) stock has been gaining momentum since the company reported better-than-expected earnings and revenues on February 4 despite higher costs and issues related to the spreading of fake news.
Out of the 45 analysts covering Alphabet, 44 analysts have rated the stock a “buy,” while only one analyst has rated the stock a “hold.” Meanwhile, none of the analysts have a “sell” rating on the stock. Analysts have given the stock a target price of $1,346.35, and the median consensus estimate is $1,350.00. The stock is now trading at a 13.4% discount to its consensus median target estimate.
Alphabet’s cash flow
Google-parent Alphabet ended with cash and cash equivalents of $16.7 billion at the end of December 2018, higher than the $10.7 billion at the end of December 2017. In Q4 2018, operating cash flow was $13.0 billion with free cash flow of $5.9 billion. The company repaid debt of $5.0 billion in the fourth quarter.
Capital expenditure was $7.1 billion in the fourth quarter, much higher than analysts’ expectations of $5.63 billion. The company’s capital spending reached $25 billion in 2018, up 102% year-over-year, as the company has doubled its spending on data centers and other facilities in 2018. The company’s capital sending was more than that of rival Microsoft (MSFT), which spent $16 billion on capital expenditures in 2018.