- Alphabet’s revenue for Q4 was reported at $96.47 billion, very close to the estimate of $96.62 billion, meeting expectations overall.
- Google advertising revenue exceeded forecasts with $72.46 billion against an estimate of $71.73 billion.
- Google Search & Other Revenue also surpassed expectations, achieving $54.03 billion versus an estimate of $53.29 billion.
- YouTube ads revenue came in higher than anticipated at $10.47 billion, compared to the estimate of $10.22 billion.
- Google Network Revenue fell slightly short, recording $7.95 billion against the estimate of $8.14 billion.
- Revenue from Google Subscriptions, Platforms, and Devices was $11.63 billion, below the expected $12.03 billion.
- Google Services revenue was marginally higher than the estimate at $84.09 billion compared to $83.73 billion.
- Google Cloud revenue was lower than predicted, at $11.96 billion versus an estimated $12.19 billion.
- “Other Bets” revenue was significantly under the forecast, bringing in $400 million against an estimate of $591.9 million.
- The earnings per share (EPS) were $2.15, beating the estimate of $2.13.
- Operating income exceeded expectations at $30.97 billion, compared to the estimate of $30.72 billion.
- Google Services operating income was strong at $32.84 billion, surpassing the estimate of $32.32 billion.
- Google Cloud operating income slightly surpassed the forecast, reaching $2.09 billion versus an estimate of $2.04 billion.
- “Other Bets” reported an operating loss of $1.17 billion, slightly better than the estimated loss of $1.21 billion.
- Alphabet’s operating margin was 32%, marginally higher than the estimated 31.9%.
- Capital expenditure was reported at $14.28 billion, higher than the expected $13.21 billion.
- The company employed 183,323 people during this period.
- There were 60 buy recommendations, 14 holds, and no sells recorded from analysts.
Alphabet on Smartkarma
Analysts at Baptista Research on Smartkarma delve into Alphabet, the parent company of Google, and its endeavors in artificial intelligence. Despite being a pioneer in AI, Alphabet faces challenges catching up with OpenAI, a leader in generative AI. The launch of Gemini chatbot in 2024 is positioned as a direct competitor to OpenAI’s ChatGPT, indicating Alphabet’s efforts to bridge the gap in AI innovation. [Source: Baptista Research]
The Value Investors Club also weighs in on Alphabet, noting the undervaluation of the company in the market despite strong revenue and earnings growth. With a discounted valuation of around 17x 2025E EPS, Alphabet has historically been mispriced, presenting an opportunity for investors to tap into its growth potential. The analysis sheds light on Alphabet’s consistent outperformance and the market’s perception of its value. [Source: Value Investors Club]
A look at Alphabet Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts examining the Smartkarma Smart Scores for Alphabet Inc. have assessed various factors to gauge the company’s long-term outlook. With a score of 4 for Growth and Resilience, Alphabet demonstrates strong potential for expansion and the ability to weather economic uncertainties. This suggests that the company is positioned well for continued development and can handle challenges effectively.
Furthermore, Alphabet’s Momentum score of 5 indicates a high level of positive market sentiment, implying investor optimism and confidence in the company’s future prospects. While the Value and Dividend scores are more moderate at 2, the overall outlook for Alphabet appears favorable based on these Smart Scores. This evaluation aligns with Alphabet Inc.’s diverse business portfolio, encompassing various digital services and products, which positions it as a significant player in the tech industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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