Alphabet Inc. ($GOOG) Earnings (Q1 FY22)

 Alphabet Inc. ($GOOG) Earnings and Opinion:


Alphabet Inc. (Google) is a company in the Communication Services sector and operates in the Internet Content & Information industry. The company offers a variety of products and services all over the world. Google was founded in 1998 and is currently headquartered in Mountain View, California. The company was first traded on the stock market in 2004. 

Alphabet EPS and Revenue (Q1 FY22):

  • EPS of $24.62 missing expectations of $25.54
  • Revenue of $68.01B beating expectations of $67.87B
Alphabet Q1 Financial Highlights:
  • Revenue was up 23% (YOY)
  • Operating margin of 30%
  • Hiring of over 20,000 employees
Opinion:
Google is currently down a little under 4% after reporting earnings yesterday. The company missed expectations on EPS was just a little above expectations in revenue. Google had some solid growth in revenue and operating margin was quite impressive, even though it was in line with last years operating margin. When looking at these numbers compared to analyzing other companies, it is just so impressive to see how much money they can generate in one quarter alone. Most companies don't even achieve these type of numbers in a year. However, investors seem to be really picky with certain qualities that companies report. In the case of Google, they missed in YouTube expectations and it caused the company to drop. Personally, Google is one of my favorite companies right now, besides Nvidia. They are due for a stock split here in the next few months, I look to get in at that point. It will be interesting to see how the stock will perform after the split, but I love the direction the company is headed. They are expanding to all components of its business. They are coming up with its own subsidiaries for all different types of services. They good thing about them, is they make so much money, they are able to reinvest a crazy amount back into the business to develop new ideas. They also invest heavily into their employees and allot them time to come up with entrepreneurial ideas. Google is going to be a winner not only in the short-term, but in the long-term as well. The upside is crazy, I would buy dips like crazy because they are doing everything right as of now. Don't let one little miss of Wall Street expectations dictate how you feel about the company. INVEST IN GOOGLE!


*Information from Alphabet, Yahoo Finance, and Google
*Estimates from Zacks

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