Alphabet showed Steady Growth in Its Business Performance

Alphabet (NSDAQ: GOOGL) announced 2021 Q1 earning results on April 27th, 2021. As a result, the revenue, operating income, and net income grew +34%, +106% and +162%, respectively (YoY). The significant growth of the net income is at least partially due to the decrease in depreciation and amortization. According to the announcement, it was partially caused by extensions of useful lives of properties and equipments.

When reviewing the segment revenues, each segment revenue was up at least 30% or more. This fact shows the steady growth of the Alphabet’s business. YouTube Ads showed the largest growth of up 49%. It was followed by Google Cloud of up 46%. Google Search, the largest segment, grew steadily by 30%.

Alphabet showed its steady growth also in 2020 Q4. It indicates that Alphabet’s business is based on the increasing returns model brought by large scale servers. 

Watanabe & Brothers’ Investment continuously expects steady growth of Alphabet’s business.

Important Notice 

  1. Watanabe & Brothers’ Investment is holding shares of Alphabet. 
  2. This report is provided solely for informational purpose and not intended for the purpose of soliciting investment in, or as a recommendation to purchase or sell any specific products. 
  3. Any opinions or statements expressed in this report are based on the author’s personal and subjective views, and are not the official views of the organization to which the author belongs.  In addition, although we have done our best efforts in making accurate assessments on the original financial statements, we cannot guarantee any complete accuracy of this report. We do not guarantee either that any future forecasts referred to in this report will certainly be realized. Investment in listed stocks, ETFs, etc. should be carried out under the responsibility of each investor, and even if the investor who read this report suffers a loss due to investment activities, Watanabe & Brothers’  Investment is not responsible for any liability.
  4. This report was originally prepared in English, and translated into the other languages with plugin utilizing Google Translation API. We hereby notify that the translations are provided only for the sake of reference, and any opinions or statements in this report should be interpreted in original English. We ask any investors reading this report to refer to the original financial statements issued by the company.
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