Alphabet Inc (NASDAQ:GOOG) released its Q1 results on Monday which showed the company's sales increasing 26% year-over-year. Earnings increased 73% this past quarter and the company reported per-share earnings of $9.93, which came in above analyst expectations of $9.28.
In the trailing twelve months, the company has averaged sales of $29.3 billion.
Despite the strong results, the stock was down in after-hours trading as investors were a bit disappointed with the performance which got a one-time boost from investment-related gains as a result of a new accounting rule that recently took into effect requiring Alphabet to record unrealized gains and losses from its investments. The $3 billion gain gave the company a big boost and analysts speculate a big reason for that is due to the company’s stake in Uber.
Alphabet has seen its stock climb by 24% in the in the past 12 months and over the previous six months it has risen 10%. The share price is a bit of an expensive buy as it trades at a price-to-earnings multiple of around 60 and is valued at nearly five times its book value.
However, over the years Alphabet has proven to be a solid buy, earning great results for investors. In the past four years, Alphabet has seen its revenues grow by 85%, averaging an annual growth rate of over 13% during that time. While it may not be in its high-growth days anymore, Alphabet does provide investors with a lot of stability and would be a great addition to any portfolio.
Tech Insider
