Alphabet +5%, Posts Upbeat Results
Wednesday, Oct 30, 2024 12:56 pm ET
1min read Alphabet Inc., the parent company of Google, reported strong fourth-quarter earnings, driving its stock price up by 5%. The tech giant's results were marked by robust growth in its cloud segment and a resurgent advertising business, particularly in YouTube. Despite lingering concerns about Google Network ads, Alphabet's growing investments in AI are expected to yield significant returns in the coming years, instilling investor optimism.
Alphabet's fourth-quarter earnings of $1.64 per share surpassed the Zacks Consensus Estimate by 2.5% and grew 56.2% year over year. Revenues of $86.31 billion increased 13% year over year (13% at constant currency), with net revenues excluding total traffic acquisition costs (TAC) rising 14.6% from the year-ago quarter's level. TAC of $13.99 billion was up 8.2% year over year.
The tech giant's strong performance was driven by solid Search and YouTube's performance, as well as the growing cloud and Other Bets segments. Alphabet's growing investments in AI to boost its Search, YouTube, and cloud business are likely to yield massive returns in the days ahead, further bolstering investor confidence.
Alphabet's cloud segment, Google Cloud, reported a 25.7% year-over-year increase in revenues to $9.19 billion, accounting for 10.6% of total revenues. The reported metric surpassed the Zacks Consensus Estimate of $9.04 billion. This growth can be attributed to the company's AI investments and innovation, which have already started benefiting the cloud segment.
YouTube's advertising revenue rebounded in the fourth quarter of 2023, soaring 15.5% and reaching $9.20 billion. This strong resurgence of digital ad spending on the video platform comes as Alphabet continues to make targeted job cuts across the company, including about 100 employees at YouTube earlier this month.
Alphabet ended 2023 with 182,502 employees, down 4.1% year over year. The company took $2.1 billion in employee severance and related charges for 2023. Despite these layoffs, Alphabet remains committed to its growth opportunities and continues to invest in its core businesses and AI advancements.
As Alphabet's stock price surges following its upbeat earnings, investors can capitalize on the company's strong fundamentals and growth prospects. While AI ventures may pose risks and challenges, Alphabet's focus on stable profits and cash flows, as seen in its cloud and advertising segments, provides a more reliable investment opportunity. By prioritizing income-focused investments and diversifying their portfolio, investors can secure steady returns and navigate the ever-evolving tech landscape.
Alphabet's fourth-quarter earnings of $1.64 per share surpassed the Zacks Consensus Estimate by 2.5% and grew 56.2% year over year. Revenues of $86.31 billion increased 13% year over year (13% at constant currency), with net revenues excluding total traffic acquisition costs (TAC) rising 14.6% from the year-ago quarter's level. TAC of $13.99 billion was up 8.2% year over year.
The tech giant's strong performance was driven by solid Search and YouTube's performance, as well as the growing cloud and Other Bets segments. Alphabet's growing investments in AI to boost its Search, YouTube, and cloud business are likely to yield massive returns in the days ahead, further bolstering investor confidence.
Alphabet's cloud segment, Google Cloud, reported a 25.7% year-over-year increase in revenues to $9.19 billion, accounting for 10.6% of total revenues. The reported metric surpassed the Zacks Consensus Estimate of $9.04 billion. This growth can be attributed to the company's AI investments and innovation, which have already started benefiting the cloud segment.
YouTube's advertising revenue rebounded in the fourth quarter of 2023, soaring 15.5% and reaching $9.20 billion. This strong resurgence of digital ad spending on the video platform comes as Alphabet continues to make targeted job cuts across the company, including about 100 employees at YouTube earlier this month.
Alphabet ended 2023 with 182,502 employees, down 4.1% year over year. The company took $2.1 billion in employee severance and related charges for 2023. Despite these layoffs, Alphabet remains committed to its growth opportunities and continues to invest in its core businesses and AI advancements.
As Alphabet's stock price surges following its upbeat earnings, investors can capitalize on the company's strong fundamentals and growth prospects. While AI ventures may pose risks and challenges, Alphabet's focus on stable profits and cash flows, as seen in its cloud and advertising segments, provides a more reliable investment opportunity. By prioritizing income-focused investments and diversifying their portfolio, investors can secure steady returns and navigate the ever-evolving tech landscape.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
