Strong Q4 Earnings for Alphabet
Alphabet, the parent company of Google (GOOGL), reported impressive Q4 earnings, exceeding estimates. Google earnings surged 56% to $1.64 per share, and gross revenue rose by 13% to $86.31 billion.
Mixed Performance in Core Advertising
While GOOGL stock faced a 4.3% decline in extended trading due to a slight miss in core advertising expectations, analyst Mark Mahaney highlighted the quarter’s fundamental strength in accelerated growth across various revenue streams.
YouTube’s Ad Revenue Contribution
YouTube’s ad revenue reached $9.2 billion, a 15% increase in line with estimates, underscoring its significance as a key revenue driver for Alphabet.
Stock Buybacks and Traffic Acquisition Costs
In Q4, Google repurchased $16.2 billion of its stock, and traffic acquisition costs rose by 8% to $13.98 billion. Google’s payments to Apple were central to the Department of Justice’s antitrust lawsuit.
Stock Performance and Resilience
GOOGL stock faced a 4.3% decline in extended trading post-Q4 earnings but rebounded significantly after a 13% sell-off in October 2023, showcasing resilience.
Overall Stock Performance and Relative Strength
Alphabet shares gained 9% in 2024, building on a 58% climb in 2023. Despite recent declines, GOOGL stock maintains a robust Relative Strength Rating of 89 out of 99.
Conclusion: Alphabet’s Resilience
In conclusion, Alphabet’s robust Q4 performance underscores its financial stability, with consistent ad revenue from YouTube and strategic stock buybacks contributing to its resilience in the market. Despite short-term market reactions, Alphabet remains a formidable player in the ever-evolving tech landscape.
