GOOG materially beats
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That’s the headline. A deeper dive tomorrow
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Revenue increased 16% YoY to $88.3B, a record reflecting strength business segment wide. Net income increased 35% YoY! Expectations were for earnings of 22.95B. They delivered 26.301. GOOG are clearly on a $100B Net Income TTM (total 12 months) which is very similar to Msft and Apple. Earnings and growth rates-two fundamental metrics which drive valuation. Yet GOOG is 'only' worth $2T vs the $3T+ assigned to the other two mega caps. It is no secret that GOOG is trading at a discount due to its perceived issues with anti trust DOJ investigationsetc. We don't think this is a major issue due to the sum of the parts thesis which would strongly suggest any remedies, such as cessation of payments for default search apps(Apple) would most likely save the company more money than they lose and any potential break up would yield even more shareholder returns. This is why the investment committee reweighted GOOG, higher, a month or so ago. It is a fantastic business 'on sale'.
The company has a very deep portfolio of excellence is a wide range of technology from autonomous vehicles (Waymo) to leading robotics and Quantum compute and cloud services.
Google Cloud revenue increased 35% due to monetisation of generative AI solutions and core Google Cloud products. CEO Pichai said ' Momentum across the company is extraordinary and our innovation and long term focus on AI investment are paying off.
Youtube, once a nascent medium to watch video's for fun is now generating $50B on a TTM basis
Waymo, the most advanced self drive service in the world has hit a milestone of 150k paid trips per week and is driving 'fully autonomously', > 1M miles per week. A 50% increase since August 2024!The company will continue to aggressively invest in Nvidia GPU's and their own custom TPU solutions
It's a very busy week and an action packed day, with the delivery of the Reeves Budget and earnings for Meta, KLA, MSFT.
Have a good day
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How time flies. Without checking I’d have guessed 10-12 years! YouTube has been valued by various financiers at circa 450 billion. Not a bad investment
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Google done good ?
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Alphabet GAAP EPS of $2.81 beats by $0.80, revenue of $90.23B beats by $1.08B
Alphabet Inc., Google’s parent company, delivered a stellar Q1 2025 earnings report, showcasing robust financial performance. Revenue reached $90.23 billion, up 12% from $80.54 billion in Q1 2024, exceeding analyst expectations of $89.1 billion.
Diluted earnings per share soared 49% to $2.81, surpassing forecasts of $2.01, driven by an $8b unrealised gain on non-marketable securities (stocks/investments). Operating income climbed 20% to $30.61 billion, with the operating margin expanding to 33.9% from 31.6%, reflecting disciplined cost management despite a 14% rise in R&D spending to $13.56 billion.Google Cloud was a standout, with revenue up 28% to $12.26 billion and operating margin nearly doubling to 17.8% from 9.4%. Alphabet announced a $70 billion share buyback programme and a $0.21 per share dividend, reinforcing shareholder returns.
Capital expenditure was confirmed at $75 billion for 2025, a 43% increase from $52.5 billion in 2024, primarily for AI-driven infrastructure like servers and data centres, with $16–18 billion earmarked for Q1 alone. CEO Sundar Pichai attributed the strong results to Alphabet’s “unique full stack approach to AI,” highlighting breakthroughs with Gemini 2.5 and AI Overviews, which now serves 1.5 billion monthly users. CFO Anat Ashkenazi emphasised sustained investment in technical infrastructure to bolster cloud and AI capabilities, noting that costs grew slower than revenue, enhancing efficiency
