Alphabet Inc. (GOOG) on Decifer

Decifer ranks GOOG number 210 of 277 tracked names on durable business quality.

Why it ranks here

• It earns strong returns on the money it puts to work, around 22%.
• Revenue is expected to grow about 22% a year, profits grew 34% over the past year, and growth is speeding up, not slowing down.
• It keeps a high share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• It is not watering down its owners with new shares and it returns cash to shareholders.
• Our durability check found pressure on this name, which costs it a few points.
• Returns around 22% and profits up 34% make a fine business, but with no needed role in our worldview and momentum at 4 out of 35 there is no growth story to chase.

The current read

The evidence on GOOG lines up on the supportive side: a live market force supports this name through its theme connection. One signal disagrees: the longer-term story is intact, but price is not rewarding it: semiconductor stocks are down 7.4% this week. The drop is large enough to signal near-term caution, worth watching but not the weight of the evidence.

Themes

• Software, Cloud & AI Platforms: Alphabet Inc. sits in the cloud platforms layer of the Software, Cloud & AI Platforms story.

Read the full GOOG research brief · See all quality rankings

Intelligence data powered by Decifer. Not financial advice. For informational purposes only.