Alphabet recently experienced a 2.05% decline in its share price over the last week. This period was marked by significant developments for the company, including ongoing discussions about acquiring Israeli cybersecurity firm Wiz, Inc. for over $30 billion. The sizable proposed deal, amid persistent antitrust concerns, fuels considerable market interest as it could substantially impact Alphabet’s cybersecurity capabilities. Additionally, Alphabet’s new partnership with NVIDIA aims to advance AI development across several industries, potentially enhancing its technological leadership. Despite these strategic endeavors, the overall market moved higher with the Dow Jones and S&P 500 both posting gains, influenced by anticipation of economic insights from the Federal Reserve. The contrasting market environment, with strong performances by other tech giants like Tesla and Boeing, might have overshadowed Alphabet’s news, contributing to the company’s slight price dip over the week.
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NasdaqGS:GOOGL Revenue & Expenses Breakdown as at Mar 2025
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Over the past five years, Alphabet’s shares achieved a total return of 185.73%. Key contributors to this performance include the company’s steady earnings growth, with a five-year annualized increase of 17.7%. Alphabet’s robust earnings, including a 35.7% rise last year, have enhanced its financial strength and appeal. As a value proposition, it trades significantly below its estimated fair value, suggesting investor confidence in future prospects.
Alphabet’s initiatives, such as share repurchases exceeding US$37.29 billion since April 2024, have supported long-term shareholder returns. Significant collaborations, like those with NVIDIA in AI technologies, continue to position the company at the forefront of industry innovation. However, over the past year, Alphabet’s performance lagged behind the Interactive Media and Services industry, returning less than the industry’s 11.7%, despite outpacing the broader US market’s 8.1% return during the same period, reflecting the competitive challenges in its sector.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
