Why Alphabet CEO’s insider sale is NOT an alarm signal for GOOG stock

It is certainly noteworthy that the CEO of the parent company of Google and YouTube alphabet (NASDAQ:GOOG;NASDAQ:GOOGLE) has reduced its share position. However, this should not be a reason for Alphabet investors to exit, and we are fairly confident in giving Google stock a “B” rating today.

Alphabet isn’t a perfect company. While Google’s missteps in the area of ​​generative artificial intelligence were embarrassing, Alphabet remains a giant and innovator in the high-tech space. And as we’ll discuss in a moment, the company’s foray into automotive technology could one day prove to be groundbreaking.

Not so scary details about the Alphabet CEO’s stock sale

Here are the details of Alphabet CEO Sundar Pichai’s latest financial transaction. Pichai reportedly sold 22,500 shares of Alphabet stock on June 20.

There’s really no reason to freak out about it. Even after this divestment, Pichai still held 227,560 shares of Alphabet. This was more of a position reduction than a large-scale sale.

If you’re an investor, your focus should be on your confidence in Alphabet as a company. If Pichai’s stock sale has shaken your faith in the company, we recommend reading our recap of Alphabet’s better-than-expected revenue and earnings for the quarter ended March 31.

We fundamentally agree with analysts at Lakehouse Global Growth Fund who “remain positive on the range of outcomes for Alphabet in the coming years.”

Analysts at Lakehouse Global Growth Fund have noted Alphabet’s “strong quarterly results,” which include 15.4% year-over-year revenue growth and 46% growth in operating income. It’s hard to argue with those results, don’t you think?

Don’t miss this opportunity for Alphabet

Analysts at Lakehouse Global Growth Fund also noticed that Alphabet’s revenue growth was “accelerating” in several segments, including Search, YouTube Ads and Google Cloud. That’s encouraging, but there’s another area where Alphabet could soon see growth.

There was a lot of talk about it Tesla’s (NASDAQ:TSL) upcoming unveiling of the robotaxis, which is expected to take place on August 8. However, Tesla is not the only one of the “Magnificent Seven” companies entering the autonomous vehicle business.

Sometimes it feels like the market is completely ignoring Alphabet’s autonomous vehicle technology division, known as Waymo. However, one could argue that Waymo is ahead of Tesla’s autonomous vehicle division.

As Barron’s emphasized: “Teslas don’t really drive themselves yet. But Alphabet’s Waymo division has a fleet of autonomous taxis that is slowly growing across the country.”

Justin Post, an analyst at Bank of America Securities, expected that Waymo could realistically “achieve revenue potential of $144 billion.”

The, Barron’s extrapolated, “that means Alphabet’s robotaxi business could one day be worth around $1 trillion.” We can’t give any guarantees here, but it’s another reason for investors to be interested in Alphabet.

Google Stock: Selling CEO Stock Shouldn’t Make You Feel Uneasy

Alphabet’s foray into autonomous vehicle technology is unlikely to increase the company’s revenue any time soon, but it could ultimately add to Alphabet’s already significant revenue stream.

Today, Alphabet is a huge, well-capitalized company, given the revenue growth in Search, YouTube Ads, and Google Cloud. Any future revenue from robotaxis would only make the business more attractive to Alphabet’s investors.

Therefore, there is no reason to panic sell your Google shares due to the CEO’s relatively low stock sales, and we give the stock a “B” grade without any immediate concerns.

At the time of publication, neither Louis Navellier nor the member of the InvestorPlace research team primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.