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Should you buy Google stock in March?
GOOGLAlphabet(GOOGL) Finbold·2025-03-03 12:08

Core Viewpoint - Google experienced its worst performance in nearly three years, with a stock price drop of approximately 16% in February, despite a modest earnings per share (EPS) beat and overall revenues falling below consensus estimates [1][2] Financial Performance - Google Cloud revenue did not meet expectations, and the company announced capital expenditures (CapEx) of 75billionfor2025,significantlyhigherthantheestimated75 billion for 2025, significantly higher than the estimated 59 billion [2] - As of the latest update, GOOGL shares were priced at 171.81,reflectinga9.24171.81, reflecting a 9.24% decline since the beginning of the year [2] Analyst Reactions - Following the earnings call, many Wall Street firms revised their outlook on Google stock, primarily lowering price targets, yet most analysts maintained 'Buy' or 'Overweight' ratings [4] - Morgan Stanley and JPMorgan set 12-month price forecasts of 210 and 220,indicatingpotentialsurgesof22.22220, indicating potential surges of 22.22% and 28.04%, respectively [5] - Bank of America analyst Justin Post raised his price target from 210 to $225, citing healthy search engine traffic and revenue growth, unaffected by rising competition from AI platforms [6] Valuation Metrics - GOOGL is currently trading at a trailing price to earnings (PE) of 21.17 and a forward PE of 19, making it the most affordable stock among the Magnificent 7, with Meta following at a forward PE of 26.41 [8] - Despite concerns over high capital expenditures, analysts still view GOOGL as having the most attractive valuation among the Magnificent 7, with expectations to outperform the S&P 500 through 2025 [9]