Alphabet Inc last = 1068 USD 1w: +19 (1.8%)
% vs. spot / Price1M6M12MLT(2Y)LT(3Y)
Target Price (consensus)3.3%9.8%---
Upside (Bull Case)3.4%10.2%---
Downside (Bear Case)-0.3%----

Alphabet is continuing its strong top line growth (total revenue in Q4 2017 increased by 24% yoy vs. expectations 22-23%). The biggest contributors are mobile search, desktop search, YouTube. As well as I see promise across a range of newer businesses including hardware, cloud, Waymo, etc. In my view this strong revenue growth is more important than rising costs: (1) margin in Q4 2017 is lower than Q4 2016 but profit in dollars increased, (2) expected more modest cost pressure after Q1 2018, (3) long-term margin potential of the new businesses.