Alphabet (NASDAQ: 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.
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