Alphabet Inc. (Google) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Alphabet Inc. (Google)

GOOGL 307.16

+1.6%

Dec 19 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: Glenn Petersen	2/2/2022 10:48:00 AM
	1 Recommendation Recommended By Sr K of 15857

Google’s Grown-Up Phase Won’t Be Boring Search giant’s stellar profit and best year of growth since 2007 set up a tough act to follow By Dan Gallagher Wall Street Journal Updated Feb. 1, 2022 6:55 pm ET Adulthood is a good look for Google, but that doesn’t mean its life will get much easier. The search giant owned by Alphabet Inc. GOOG +6.35% closed a banner year with its fourth-quarter results posted late Tuesday. Advertising revenue jumped 33% year over year to $61.2 billion—beating Wall Street’s consensus forecast by 4%. That was mostly on the strength of the classic search business; YouTube advertising grew 25% but fell a bit short of analysts’ targets. The strong close gave the parent company its best year of revenue growth since 2007, with operating margins for the year closing above 30% for the first time since 2012. Alphabet’s share price jumped nearly 9% after hours following the earnings report. The results confirm Google’s place at the top of a digital-advertising market that enjoyed a strong—likely permanent—boost from the pandemic. That rising ship will lift other boats; shares of Snap, Twitter, Pinterest and Facebook parent Meta Platforms jumped more than 2% following Alphabet’s results Tuesday. Google’s chief business officer Philipp Schindler said on the company’s call Tuesday that retail, finance, travel and media were all strong contributors to advertising strength during the quarter. Pulling off a repeat performance will be tricky, though. The last year benefited from comparisons to 2020, when the onset of the pandemic hit Google’s business hard—even causing ad revenue to fall for the first time during one quarter. This year will also start to reflect fee changes the company has made to its Google Play app-store business. And while Google’s Cloud business saw growth accelerate in 2021 from the previous year, it is still generating losses. Chief Financial Officer Ruth Porat said on Tuesday’s call that the company plans to continue investing “aggressively” in the business—strongly suggesting the cloud unit won’t tip into profitability this year. The stellar performance of Alphabet’s stock also sets up a tough act to follow. The shares jumped more than 65% in 2021—outperforming the company’s big tech rivals. And Washington keeps gearing up for a crackdown; a bill that would prevent companies like Google from preferencing their own products and services in searches is advancing through the Senate. A 20-for-1 stock split also announced Tuesday adds a new wrinkle. The split—targeted for completion in July—would put the 23-year-old company’s share price in range for possible Dow inclusion. That would mark a new, more mature phase for the Silicon Valley wunderkind. But that doesn’t mean the challenges of its more youthful years won’t haunt. Google’s Grown-Up Phase Won’t Be Boring - WSJ

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next