The markets have received with open arms the results of Alphabet, Google’s parent company, which has exceeded all expectations. The firm run by Sundai Pichar has not left a single loophole for investors to panic despite the judicial storm that threatens the firm, and has He fulfilled by far all the duties that the analysts had assigned him. The firm celebrates it with increases of up to 4% in the after hours of Wall Street.
Thus, Google has registered revenue of $88.27 billion, up 15% year-on-yearcomfortably beating the 86.45 billion expected by the analyst consensus. Its profits have also exceeded expectations: 2.12 dollars per share, compared to the 1.84 that was calculated. Once the user acquisition costs are discounted, that is equivalent to about 28.52 billion dollars, exceeding the 26.67 billion estimated by the markets.
Even more positive are the data from its main business segments. The searchesa segment in which it is having to face competition for the first time in decades after the emergence of AI chats, 49.39 billion have entered, beating the expected 49.08 billion. YouTube has earned $8.92 billion, beating the expected $8.89 billion, and has managed to exceed $50 billion annually between ads and subscriptions for the first time in its history. Google Cloudone of the ‘weakest’ legs of the firm, has managed to earn 11,350 million, compared to the estimated 10,790. and the area of servicesthe future of the firm, has reached 76,510 million, compared to the 75,240 that were calculated.
Alphabet thus kicks off a week in which five of the ‘Magnificent Seven’ will come under the scrutiny of analysts. The firm run by Sundar Pichai has some very busy months in court: first with a conviction for monopoly and the threat of a forced division hanging over his head; and then with another sentence, still suspended, that would force him to offer an alternative to the Play Store to download apps on Android phones.
With this judicial panorama, the company’s excellent results continue to be quoted in the background. Investors, above all, need to know what real risks the company faces. The concern is maximum about the company, which is trading 22 times earnings below its historical average of 27 timesa sign that the market has paused its potential on the stock market due to regulatory uncertainty.
“It’s easy to shout about the company’s valuation, but there are a lot of fears that are difficult to quantify, which means that can’t say yet if it’s a value or a value trap“Commented George Cipolloni, portfolio manager at Penn Mutual Asset Management, before results. “It is clear that It seems cheap compared to the other Magnificent Seven, but it is relative because of the risk you takeEven so, there are still high hopes that it will dodge dismemberment like Microsoft did.
Additionally, this month the company replaced Prabhakar Raghavan, head of Search and Advertising, the heart of Google, in a move to address the risks that AI poses to its traditional business model.
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