Alphabet (GOOGL.US) stock rose sharply in premarket after the tech giant posted impressive quarterly results and announced a 20-for-1 stock split in the form of a one-time special stock dividend, in order to attract a larger group of small investors.
- Alphabet’s overall quarterly sales increased 32% to $75.33 billion, beating analysts’ estimates of $72.17 billion. EPS: $30.69 vs $27.34 expected, up 37.6% from the same period last year.
Alphabet's key 4Q21 growth metrics. Source: DM Martins Research, data from company reports via Seeking Alpha
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Create account Try a demo Download mobile app Download mobile app- Ad revenues across its search engine, web partnerships and YouTube rose 32.6% in Q4 to $61.24 billion
- Cloud business recorded revenue growth of 45% to $5.5 billion, above estimates of $5.4 billion, though it lost $890 million. The company's cloud sales force has more than tripled since 2019, executives said on a conference call with analysts Tuesday.
- Sales of Google Pixel smartphones reached a new record despite supply constraints.
- Revenue from the company's "Other Bets" segment, which includes its self-driving car effort Waymo, also recorded a slight year-over-year revenue decline to $181 million and a loss of nearly $1.8 billion.
- Total costs in 2021 increased 27% to $178.9 billion as the company began to resume its pre-pandemic pace of hiring and construction
- Profit jumped by 89% to $76 billion for the whole 2021. Sales rose 41% compared with 2020, when company recorded only 13% sales increase, because advertisers reduced spending in the early stage of the pandemic
- The numerous lawsuits in which Google is accused of engaging in anti-competitive behavior in the advertising market and mobile app stores continue to be one of the biggest challenges facing the company. Google is planning to step up efforts to lower fees for Play app stores in order to improve revenue.
Alphabet (GOOGL.US) stock price not only managed to erase all recent losses following the release of Q4 results, but also hit a new all-time high at $3040.05. Source: xStation5
