Alphabet: Fundamentals Indicate A Waning Corporation (NASDAQ:GOOG) – Seeking Alpha
Summary
- Google Search is losing market share to competitors.
- YouTube audience growth has been declining since 2017.
- The corporation appears to lack a business that could drive the next leg of growth.
- We are initiating on GOOG with a Buy Rating and 1-year Price Target of $108/share.
Investment Conclusion
Alphabet (NASDAQ:GOOG) is an excellent business in terms of generating net income and free cash flows. However, with respect to long-term growth potential, the company is far from attractive. Over the last nine-months ended September 2022, GOOG generated ~$207 billion in revenues, ~$46.3 billion in net income, and ~$44 billion in free cash flows, with a profit margin of 22.4%. Clearly, GOOGL is a cash cow. However, the current prosperity is based on advertisement revenues (80% of total sales) from businesses that are on track to declining growth, or generating moderate growth, over the long term.
Every day, Google Search is engaged in a losing battle with competitors slowly but…
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source: https://news.oneseocompany.com/2022/11/29/alphabet-fundamentals-indicate-a-waning-corporation-nasdaqgoog-seeking-alpha_2022112936693.html
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