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.
- 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.
- 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.
- 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.