by winston » Thu Jun 28, 2018 1:12 pm
not vested
Stocks to Buy: Alphabet (GOOGL)
Even internet king Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) has not escaped the current market jitters. GOOGL is currently trading lower (3.9% down in the last week). This is despite numerous bullish analyst calls.
For example, five-star Monness analyst Brian White recently reiterated his GOOGL Buy rating. This comes with a $1,306 price target (15% upside potential).
White reminds investors that the three “Big Bet” areas for Alphabet include YouTube, Google Cloud and hardware. In May, for example, YouTube highlighted that over 1.8 billion logged-in users watched YouTube content each month. And now YouTube has received a powerful upgrade.
Google’s latest innovation is a new YouTube music streaming service. This should “further … [expand] the capabilities and reach of the YouTube franchise,” cheers White. “For Alphabet, we believe this new service will improve the company’s digital ecosystem and the stock is attractive at just 18x our CY:19 EPS projection (ex-cash).”
The ad-supported version of YouTube Music will be free while YouTube Music Premium (i.e., ad-free, the ability to download, background listening, etc.) will cost $9.99 per month. Moreover, Google Play Music subscribers ($9.99 a month also) will also receive YouTube Music Premium as part of their current package. So far, the initial launch encompasses U.S., Australia, New Zealand, Mexico and South Korea.
GOOGL scores a Strong Buy analyst consensus rating. In the last three months this breaks down into 22 buy ratings vs. just three hold ratings. Meanwhile, the $1,261 average analyst price target works out at 11% upside from current levels.
Source: Investor Place
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