Key Morningstar Metrics for Alphabet (GOOGL/GOOG)
- Fair Value Estimate: $340.00
- Morningstar Rating: ★★★
- Economic Moat: Wide
- Uncertainty Rating: Medium
Alphabet’s stock has experienced significant growth, surging approximately 48% since September 1, 2023, and achieving a 60.5% year-to-date increase. A major driver of this rally is the release of the Gemini 3 AI model, enhancing Alphabet’s competitive edge. Despite concerns about regulatory risks and market uncertainties, Alphabet’s third-quarter earnings showed resilience, particularly in Google Search and Cloud services.
Morningstar analyst Malik Ahmed Khan emphasizes that the versatility of Gemini 3 presents an essential advantage over competitors like OpenAI. Nonetheless, challenges persist, such as potential declines in Google Search queries and cloud growth. The company’s diverse revenue sources, including YouTube and Waymo, provide a buffer against such risks. Overall, while Alphabet’s stock is viewed as fairly valued, sustained investor confidence in Google Search remains crucial for future growth.
