Alphabet Inc.

(GOOGL)
Report
Yassin Nasseri, Ryan Terrents, Bryce Lanahan
 Alphabet Inc (NASDAQ: GOOGL) is a leading communication
service provider across the globe, offering multiple products
and programs in the United States, Europe, Africa, the Middle
East, Canada, Latin America, and the Asia-Pacific

Total revenue for GOOGL was reported to be $69.1 billion

Business during Q3 of 2022. Google advertising was responsible for
$54.48 billion of its total revenue. A further breakdown shows
that $39.5 billion was from Google Search, $7.07 billion was
Overview from YouTube ads, and $7.87 billion was from Google Network

Although Alphabet leverages its position in the web browsing

industry to generate most of its revenue, the revenue stream
from the cloud database segment is growing swiftly due to the
increased investment in that area.
 Uptrend in Media and Services Industry

Facebook and Google Attract more than 50% of mobile ad

spending according to eMarketer.

Industry
China’s annual online video ad spending may double to $5.9
Overview billion by 2016, that is largely distributed through one of
Googles competitors, Baidu.

Google is the most visited website with more than 1 billion

unique visits per month followed by Microsoft with about
900 million monthly visits and Facebook with 800 million
visits.
 Investment Thesis

• Invested $30 Billion into their cloud service infrastructure

• Continue to take steps to safeguard their advertisement revenue streams
• Ability to adapt to consumer needs
• Artificial Intelligence is constantly evolving
 Valuation

• Current Price: $100.23

• P/E Valuation: $172.74
• DCF Valuation: $179.04
 Risks

• Reliance on Ad Revenue
• Ad revenue accounts for 70% of their total
revenue
• Regulations
• Increased regulations have limited growth
rates for other firms in this industry
• i.e. Meta
 Top 5 Institutional Shareholders

1. Vanguard Group Inc. – 422,194,039 Shares – 6.94% out

2. Blackrock Inc. – 364,589,580 Shares – 5.99% out
3. T. Rowe Price – 203,484,912 Shares – 3.34% out
4. State Street Corporation – 196,897,894 Shares – 3.24% out
5. FMR, LLC – 137,342,098 Shares – 2.26% out
Stock Performance and Trends In
Recent Year
 Throughout our research
and own valuation
models, we believe that
GOOGL is a strong buy
right now
Our Decision:
Buy
We feel as this
company is severely
undervalued in the
current market at its
current price of $100.23