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Google Stock In 5 Years: What To Consider

May 04, 2021 3:34 PM ETAlphabet Inc. (GOOG), GOOGLAMZN, MSFT42 Comments


  • GOOGL is firing on all cylinders.
  • The company generated strong top and bottom line growth, even after adjusting for unrealized investment gains.
  • GOOGL has $135 billion in cash on its balance sheet and appears to finally be buying back shares.
  • I view GOOGL as one of the best risk-reward opportunities in the market right now.
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Ivanka Trump And Google CEO Sundar Pichai Hold Roundtable In Dallas
Photo by Ron Jenkins/Getty Images News via Getty Images

Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) has been a prime beneficiary of the pandemic, not only due to robust financial growth but also due to some multiple expansions. The company has seen

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This article was written by

Julian Lin profile picture

Julian Lin is a financial analyst. He finds undervalued companies with secular growth that appreciate over time. His approach is to look for companies with strong balance sheets and management teams in sectors with long growth runways.

Julian is the leader of the investing group Best Of Breed Growth Stocks where he only shares positions in stocks which have a large probability of delivering large alpha relative to the S&P 500. He also combines growth-oriented principles with strict valuation hurdles to add an additional layer to the conventional margin of safety. Features include: exclusive access to Julian's highest conviction picks, full stock research reports, real-time trade alerts, macro market analysis, individual industry reports, a filtered watchlist, and community chat with access to Julian 24/7. Learn more.

Analyst’s Disclosure: I am/we are long GOOGL, AMZN. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (42)

A special dividend would be welcomed
Julian Lin profile picture
@Vaca Valley I actually would prefer a token dividend (0.01 per share even) plus more aggressive buybacks
Murad Shawar profile picture
@Julian Lin I would welcome the dividend so I can use that to buy more shares and keep them not a short term pump for those who wish to exit
Librarian Capital profile picture
“GOOGL ... appears to finally be buying back shares“

Alphabet bought back $31bn of stock in 2020 and $18bn of stock in 2019.
Julian Lin profile picture
@Librarian Capital If I recall correctly, 2019 repurchases were barely enough to offset stock-based compensation.
Librarian Capital profile picture
@Julian Lin Average number of shares (diluted):
2017: 703.584
2020: 687.028

Share buybacks are not new.
Julian Lin profile picture
@Librarian Capital I mean you're technically not wrong...
My main point is that GOOGL's share repurchase program is much more meaningful now than before.
If your point is that they have been buying back stock before 2020, then you are also correct.

GOOG gone in five years..gobbled up by BABA
Finally you got what you wanted,, share buy-back!! :)
Julian Lin profile picture
@Investinyourself62 Yes - the share buy-back is a positive at GOOGL
Advanced_Tech profile picture
Google is the best company in the world.the only company that’s worth the price of over 2000$ a share.
@BillBoard1133 do you know what shares outstanding and market cap are sunshine?
Advanced_Tech profile picture
@Michu Investments yes and price per share is a lot more important than market cap.this is why Apple is a lot cheaper than Amazon for example.The market cap is higher but the price per share is a lot cheaper and that’s what really matters for most investors.
@BillBoard1133 You are going to be dangerous to yourself Bill. Price per share offers almost no useful information by itself.
youngdividend profile picture
Alphabet has the best balance sheet in the world . That alone is your margin of safety . Only issue with alphabet is moving forward it will be difficult for them to buy a business without going through regulatory headaches . Other than that it is one of the finest companies you can own and sleep well at night .
I truly hope it crashes to a penny stock.
Julian Lin profile picture
@fullback85 would be a great buying opportunity
Gpa Bui profile picture
Great ceo and greatest cfo. These 2 leaders will lead alphabet a long long way up. ❤️❤️❤️❤️👍👍👍👍👍
GOOGL seems fairly valued for a 10% CAGR right now, which is great if you’re happy with those returns.
Murad Shawar profile picture
@jaug1 I only add on dips
Julian Lin profile picture
@jaug1 How did you come up with that projection?
@Julian Lin discounted future earnings
Its a FAANG stock so there is no limit its stock price.
Thank you.

Also, even if $GOOGL has to spin off parts, that could unlock shareholder value and maybe prompt a dividend. Still a win-win.

Might start following seriously if we have a market correction.
if it is ever split apart, the pieces will probably double in value within one year
3carmonte profile picture
WooHoo. Only down 56 bucks in the last two days. Holding but not happy.
Doesn't Google's share repurchase ignore class A shares? Perhaps I'm mistaken but it seems the repurchase of shares is to provide insiders liquidity.
Fooly Finance profile picture
@SmokeJack It still reduces outstanding shares regardless of class, which means its a tailwind for EPS.
Julian Lin profile picture
@SmokeJack It does not really matter
@Julian Lin Karen Finerman on CNBC said on halftime report that the conference call intimated that the buyback would be for the class C shares GOOG
Google and Amazon are the finest companies that capitalize has created.
Basit Saliu profile picture
Google parent company Alphabet will become the most valuable company in 5 years and they have the cash to buy the next big thing. The Other Bets can also be partially spun off to unlock value and even buy established businesses.Great management and Great future.

Great Article.
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