From Nasdaq:

Alphabet’s stock fell 8% after its Q4 earnings report despite posting $86.31 billion in revenue, a 13% increase year over year exceeding expectations. Google’s ad business brought in 76% of total revenue, subscriptions 13%, and cloud business 11%. This quarter marked the fourth consecutive quarter of year-over-year revenue growth acceleration.

Alphabet experienced a 27% operating margin in Q4 and expects it to reach 29% in 2024 and 30% in 2025. Analysts project 16% growth in 2024 and 2025 but note that Alphabet trails behind Microsoft in the cloud platform race. At 21 times its forward earnings expectations, Alphabet appears cheaper than Microsoft and Amazon.

Alphabet’s stock outlook remains uncertain due to concerns about its ability to compete in AI and cloud services, regulatory risks, and increased interest rates. While it may not generate significant gains in the short term, its market dominance and long-term potential could make it a solid investment.

If you’re considering investing in Alphabet, note that the Motley Fool’s Stock Advisor service has identified 10 stocks with what it believes are the highest returns in the coming years, although Alphabet is not on the list. Furthermore, Alphabet is a good buy according to John Mackey who is a former CEO of Whole Foods and on the board of directors for the Motley Fool.



Read more: Where Will Alphabet Stock Be in 1 Year?