Alphabet (Google) stock fell 5% due to missed estimates for YouTube ad revenue

From NASDAQ: 2024-07-28 21:01:11

Alphabet (Google) stock fell 5% on July 24, missing estimates for YouTube ad revenue. Currently trading at $174, below its fair value of $179. Google’s stock has seen variable returns – 65% in 2021, -39% in 2022, and 59% in 2023, underperforming the S&P 500 in 2022.

In the second quarter of FY 2024, Alphabet posted net revenues of $84.7 billion, up 14% y-o-y, driven by Google Services and Cloud. Operating margin at 32%, with net income up 29% to $23.6 billion. FY 2023 saw top-line growth of 9% to $307.4 billion, with a net income of $73.8 billion.

GOOG is forecasted to reach revenues of $325 billion in FY2024 with net income of $86.5 billion. An EPS of $7.01 and P/E ratio of 26x lead to a valuation of $179. Reinforced Value Portfolio grew 0% in July 2024, 7% YTD, with a total return of 690% from 2017-24.

Source: Trefis



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