Technology
How Analysts Keep Chasing Alphabet's Targets Higher and Higher
October 28, 2017 9:45 am
Last Updated: October 28, 2017 9:45 am
The stock gained nearly 5% in Friday’s session, and although this doesn’t seem like a blockbuster number, let’s take a look at the market cap. Prior to this earnings release, Alphabet’s value hovered around $679 billion, but since then it’s tacked on $32 billion to make a grand total of $711 billion at Friday’s close, second only to Apple’s $850 billion.
For some perspective: out of the S&P 500, roughly 325 companies’ market caps are less than $32 billion. With a couple more earnings reports like this, Alphabet will easily join the trillion-dollar market cap club.
In terms of the results, Alphabet reported $9.57 in earnings per share (EPS) and $27.77 billion in revenue. That compared with consensus estimates from Thomson Reuters of $8.33 in EPS on revenue of $27.2 billion. The same period of last year reportedly had EPS of $9.06 and $22.46 billion in revenue.
What stood out in this report was that total traffic acquisition costs for the third quarter came to $5.50 billion, a 31.6% increase from $4.18 billion last year. And at the same time, aggregate paid clicks rose 47% from the same period last year and rose 6% sequentially. The average cost per click fell 18% from last year.
24/7 Wall St. tracks many analyst calls in key stocks each day and week. Alphabet’s consensus analyst target price from Thomson Reuters was $1,053.50 ahead of earnings, but that adjusted mean price target was up at $1,149.23 late on Friday after analysts began lifting their target prices after earnings.
Here’s what analysts were saying after earnings:
Shares of Alphabet closed out Friday up 4.8% at $1,019.27, with a 52-week range of $727.54 to $1,048.39.
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