From Morningstar: 2024-04-26 07:01:00

Alphabet, Google’s parent company, reported earnings on April 25, with a fair value estimate of $179 per share. The company showed strong results in the first quarter, with revenue growth and margin expansion. Google Search and YouTube advertising increased, with revenue up 15% year on year.

Alphabet instituted a dividend and announced $70 billion in share repurchases. The firm is increasing efforts in artificial intelligence development, with higher capital investment. YouTube TV has over 8 million subscribers, contributing to an 18% increase in Google services revenue. Operating margin expanded to 32.5% amid rising capital spending and free cash flow.

Google’s cloud business saw impressive growth, with revenue up 28%. Despite strong subscriber growth in other Google services, the firm faced headwinds from Asian retailer spending patterns and increased depreciation expenses. Capital spending doubled to $12 billion, resulting in free cash flow dropping slightly to $16.8 billion.



Read more at Morningstar: Alphabet Shares Surge on Earnings, Dividend Surprise