GOOGL (Alphabet Inc) vs S&P 500 Comparison

GOOGL

S&P 500

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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GOOGL

S&P 500

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GOOGL

S&P 500

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P 500

GOOGL

Alphabet Inc
Glance View

Economic Moat

Wide

Market Cap

2.4T USD

Industry

Media

Alphabet Inc., birthed from the colossal success of Google, stands as a testament to the transformative power of innovation and strategic diversification. Born out of a reorganization in 2015, Alphabet was designed to segregate Google's core services, like search and advertising, from its wildly ambitious "Other Bets" ventures, such as self-driving cars, health tech, and urban innovation initiatives. This structural transformation enabled Alphabet to pursue moonshot ideas without hampering the profitability and operational focus of Google's core business. Google, undeniably the crown jewel of Alphabet's empire, drives the vast majority of the company's revenue through its dominance in digital advertising. With unparalleled reach through its search engine, YouTube, and the Google Display Network, Google captures billions in revenue by connecting advertisers with an expansive global audience. Beyond advertising, Alphabet has ventured into various sectors to broaden its revenue streams. Google Cloud, for example, has carved out a substantial niche in the competitive cloud computing industry, catering to both corporate giants and budding startups with its powerful infrastructure and artificial intelligence capabilities. Meanwhile, the company's "Other Bets," though yet to reach the financial heights of Google, represent a bold exploration into emerging technologies. Projects like Waymo seek to revolutionize transportation with autonomous vehicles, while initiatives under Verily and Calico aim to extend human life and enhance healthcare. In this way, Alphabet not only continues to fortify its dominance in the digital realm but also positions itself as a vanguard of future technological breakthroughs.

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GOOGL Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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AU		REA Group Ltd ASX:REA	Add

US		Meta Platforms Inc NASDAQ:META	Select
CN		Tencent Holdings Ltd HKEX:700	Select
JP	L	LY Corp XMUN:YOJ	Select
CN		Baidu Inc NASDAQ:BIDU	Select
CN		Kuaishou Technology HKEX:1024	Select
KR		Naver Corp KRX:035420	Select
US		Pinterest Inc NYSE:PINS	Select
CN		Fangdd Network Group Ltd NASDAQ:DUO	Select
US		Snap Inc NYSE:SNAP	Select
AU		REA Group Ltd ASX:REA	Select

US		Meta Platforms Inc NASDAQ:META	Add
CN		Tencent Holdings Ltd HKEX:700	Add
JP	L	LY Corp XMUN:YOJ	Add
CN		Baidu Inc NASDAQ:BIDU	Add
CN		Kuaishou Technology HKEX:1024	Add
KR		Naver Corp KRX:035420	Add
US		Pinterest Inc NYSE:PINS	Add
CN		Fangdd Network Group Ltd NASDAQ:DUO	Add
US		Snap Inc NYSE:SNAP	Add
AU		REA Group Ltd ASX:REA	Add

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GOOGL

vs

S&P 500

Stocks Performance
GOOGL vs S&P 500

Performance Gap
GOOGL vs S&P 500

Performance By Year
GOOGL vs S&P 500

Competitors Performance
Alphabet Inc vs Peers

Alphabet Inc
Glance View

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	Johnson & Johnson NYSE:JNJ	142.27 USD
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	Bank of America Corp NYSE:BAC	46.21 USD
	Mastercard Inc NYSE:MA	516.4 USD 0.98%
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	Exxon Mobil Corp NYSE:XOM	106.93 USD

GOOGL vs S&P 500

Stocks Performance GOOGL vs S&P 500

Performance Gap GOOGL vs S&P 500

Performance By Year GOOGL vs S&P 500

Competitors Performance Alphabet Inc vs Peers

Alphabet Inc Glance View

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Stocks

GOOGL

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S&P 500

Stocks Performance
GOOGL vs S&P 500

Performance Gap
GOOGL vs S&P 500

Performance By Year
GOOGL vs S&P 500

Competitors Performance
Alphabet Inc vs Peers

Alphabet Inc
Glance View