Alphabet reported strong fiscal fourth-quarter earnings, with sales up 18% and Google Cloud experiencing accelerated growth. Morningstar maintains a $340 fair value estimate for Alphabet, viewing the stock as fairly valued, and highlights the company’s strong AI integration and financial position despite increasing capital expenditures for AI development. Long-term growth is projected at a 15% compound annual growth rate over the next five years, underpinned by a wide economic moat and efforts to diversify revenue streams beyond advertising.
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After Earnings, Is Alphabet Stock a Buy, a Sell, or Fairly Valued?
Alphabet reported strong fiscal fourth-quarter earnings, with sales up 18% and Google Cloud experiencing accelerated growth. Morningstar maintains a $340 fair value estimate for Alphabet, viewing the stock as fairly valued, and highlights the company’s strong AI integration and financial position despite increasing capital expenditures for AI development. Long-term growth is projected at a 15% compound annual growth rate over the next five years, underpinned by a wide economic moat and efforts to diversify revenue streams beyond advertising.