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Is Trending Stock Alphabet Inc. (GOOGL) a Buy Now?

  • 24.03.2025 20:19
  • msn.com
  • Keywords: danger, danger

Alphabet Inc.'s stock has seen recent declines but shows potential for future growth with positive earnings estimates and revenue forecasts, though its Zacks Rank suggests a neutral hold position.

Columbia University faces pressure from the Trump administration to alter campus policies, restricting protests and academic freedom, sparking concerns among students and faculty about safety and intellectual freedom.

Alphabet ServicesGOOGLsentiment_dissatisfied
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Estimated market influence

Alphabet Inc.

Alphabet Inc.

Negativesentiment_dissatisfied
Analyst rating: Buy

Alphabet's stock performance is under scrutiny due to earnings and revenue growth analysis.

Columbia University

Negativesentiment_dissatisfied
Analyst rating: N/A

Facing Trump administration demands, impacting campus policies and student life.

Context

Analysis of Alphabet Inc. (GOOGL)

Key Business Insights

  • Stock Performance: GOOGL shares dropped -8.7% over the past month, underperforming the S&P 500 (-5.7%) and its industry peers (-8.7%).
  • Earnings Estimate Revisions:
    • Current quarter EPS: $2.02 (+6.9% YoY growth).
    • Fiscal Year 2024 EPS: $8.90 (+10.7% YoY).
    • Fiscal Year 2025 EPS: $10.22 (+14.8% YoY, but estimate slightly decreased by -0.1% over the last month).
  • Revenue Growth:
    • Current quarter revenue: $75.65B (+11.9% YoY).
    • FY 2024 revenue: $330.07B (+11.8% YoY).
    • FY 2025 revenue: $366.92B (+11.2% YoY).
  • Valuation: Alphabet receives a Zacks Value Style Score of C, indicating it is fairly valued compared to peers.
  • Zacks Rank: #3 (Hold), suggesting neutral performance relative to the broader market.

Analysis of Columbia University's Policy Changes

Key Business and Market Implications

1. Federal Funding and Policy Changes

  • Funding Context: Columbia faces a $400M federal funding cut unless it complies with Trump administration demands.
  • Policy Overhaul:
    • Protest Restrictions: Protests inside and outside academic buildings are banned, with severe penalties for violations.
    • Mask Ban: Students are prohibited from wearing masks to "conceal identity."
    • Disciplinary Actions: New policies allow sanctions against student groups and individuals violating anti-discrimination rules.

2. Competitive Dynamics

  • Student and Faculty Concerns:
    • Climate of Fear: Jewish students report feeling unsafe due to increased surveillance and potential arrests.
    • Academic Freedom: Faculty argue the changes erode academic freedom, with one professor calling it an "assault on higher education."
  • Curriculum Review: The university is conducting an "immediate" review of Middle East studies programs, raising concerns about bias and neutrality.

3. Strategic Considerations

  • Public Perception: Columbia's concessions may set a precedent for other universities, potentially leading to broader federal interference in higher education.
  • Long-Term Effects:
    • The changes could deter students from engaging in political activism, stifling campus diversity of thought.
    • The university’s reputation as a leader in academic freedom and inquiry may be tarnished.

4. Regulatory Impact

  • Legal Challenges: Mahmoud Khalil's arrest highlights the potential for legal battles over free speech and discrimination on campuses.
  • Faculty Resistance: Professors are pushing back against what they view as external interference in university governance.

Conclusion

Alphabet Inc.'s stock performance and earnings growth suggest it is a stable investment with no immediate red flags, but its Zacks Rank indicates neutral short-term prospects. Columbia University's policy changes, however, raise significant concerns about academic freedom, free speech, and the long-term impact of federal interference in higher education. The situation underscores the delicate balance between institutional autonomy and external pressures.