Alphabet (GOOG, $1,248.99) crushes Q2 earnings expectations; announces $25 billion additional share buyback
Alphabet reported second-quarter earnings that beat analysts’ estimates. The parent company of Google also revealed its $25 billion additional stock buyback plan.
Alphabet’s adjusted earnings for the quarter came in at $14.21 per share, wee above the $11.30 per share expected by analysts surveyed by Refinitiv.
Total revenue of $38.94 billion also exceeded analysts’ estimate of $38.15 billion.
Even traffic acquisition costs of $7.24 billion for the tech giant were lower than the $7.27 billion expected, according to StreetAccount. On the other hand, Google reported advertising revenue of $32.6 billion for the second quarter, higher than the $28.09 billion of the year-ago quarter. Traffic acquisition costs incurred as a percentage of Google advertising revenues was slightly lower this year compared to the previous year’s quarter.
While cost-per-click on Google properties declined -11% year-over-year in Q2, paid clicks on Google properties surged + 28% over the same period.
Alphabet also said that its board of directors have approved a repurchase of up to an additional $25 billion of its Class C capital stock. During a call with analysts, CFO Ruth Porat indicated that the additional capital would go towards bolstering growth and acquisitions and investments.
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Notable companies
The most notable companies in this group are Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), Spotify Technology SA (NYSE:SPOT), Baidu (NASDAQ:BIDU), Pinterest (NYSE:PINS), Tencent Music Entertainment Group (NYSE:TME), Snap (NYSE:SNAP), Twilio (NYSE:TWLO), Zillow Group (NASDAQ:Z).
Industry description
Companies in this industry typically license software on a subscription basis and it is centrally hosted. Such products usually go by the names web-based software, on-demand software and hosted software. Cloud computing has emerged as a major force in this space, making it possible to save files to a remote database (without requiring them to be saved on local storage device); as long as a device has access to the web, it can access the data and the software programs to run it. This has in many cases facilitated cost efficiency, speed and security of data for businesses and consumers. Alphabet Inc., Facebook, Inc. and Yahoo! Inc. are some well-known names in the internet software/services industry.
Market Cap
The average market capitalization across the Internet Software/Services Industry is 60.93B. The market cap for tickers in the group ranges from 1.11K to 1.94T. GOOGL holds the highest valuation in this group at 1.94T. The lowest valued company is MSEZ at 1.11K.
High and low price notable news
The average weekly price growth across all stocks in the Internet Software/Services Industry was -1%. For the same Industry, the average monthly price growth was -0%, and the average quarterly price growth was 2%. TRFE experienced the highest price growth at 53%, while QQQFF experienced the biggest fall at -58%.
Volume
The average weekly volume growth across all stocks in the Internet Software/Services Industry was 15%. For the same stocks of the Industry, the average monthly volume growth was 9% and the average quarterly volume growth was -8%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 45
P/E Growth Rating: 72
Price Growth Rating: 59
SMR Rating: 84
Profit Risk Rating: 92
Seasonality Score: -6 (-100 ... +100)