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My Take on Alphabet's Recent Earnings

By Jose Najarro – Nov 1, 2021 at 10:30AM

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Google's stock price has gone up over 70% year to date.

Today's video focuses on Alphabet's (GOOGL 1.90%) (GOOG 1.56%) recent earnings, reported on Oct. 26 after the market closed. Alphabet's advertisement saw strong growth year over year (YOY), causing its stock price to increase after earnings. Here are some highlights from the video. 

  1. Alphabet reported revenue of $65 billion, representing a growth of 41% YOY and over 5% quarter over quarter (QOQ). Out of the $65 billion of total revenue, $53.1 billion came from advertisements, roughly $5 billion from Google Cloud, and $6.7 billion from other segments. 
  2. YouTube Ads made up $7.2 billion of total revenue, up 43% YOY and 2.9% QOQ. Investors should note that YouTube advertisement is up strongly even though last year was a USA presidential election year, and election years usually see a higher influx of advertisement spending. Google Cloud saw a roughly similar percentage YOY growth, but it is still an unprofitable segment for Alphabet.
  3. Numerous analysts increased their price target for Alphabet, causing a bullish sentiment toward the stock. As of midday of Oct. 29, Alphabet's stock price has gone up over 5% in the past five days and over 70% year to date.

Click the video below for my full thoughts and analysis. 

*Stock prices used were the midday prices of Oct. 29, 2021. The video was published on Oct. 29, 2021.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Jose Najarro owns shares of Alphabet (C shares). The Motley Fool owns shares of and recommends Alphabet (A shares) and Alphabet (C shares). The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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