Alphabet’s stock (Google) (NASDAQ
The global tech giant posted mixed results in the first quarter of 2022, with earnings below consensus estimates but revenue in line. It reported total revenue of $68 billion, up 23% year-on-year, mostly due to a 22% increase in Google.
The company’s revenue grew 41% year-on-year to $257.6 billion in fiscal 2021. It was primarily driven by a 43% growth in Google advertising revenue, followed by of a 47% increase in Google’s cloud business. Overall, that translated into an 89% jump in net profit to $76 billion. This jump is mainly attributable to the decrease in expenses as a % of income and the increase in “other income”.
To advance Google revenue is expected to reach $294.9 billion in fiscal 2022. Additionally, its net profit margin is expected to decline slightly in the fiscal year, resulting in net income of $70 billion. This, coupled with an annual EPS of $106.68 and a P/E multiple of 29x, will lead to the valuation of $3095.
Here you’ll find our previous coverage of Google stock, where you can follow our view over time.
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