Google’s parent company, Alphabet Inc. (NASDAQ:GOOG) has just reported earnings and has continued to impress investors and analysts alike with year over year quarterly earnings growth of 24%. The company reported strength in a number of key segments including the company’s mobile ad segment which continues to be the key growth driver for the American technology company.
Alphabet’s share price breached $1,000 per share on the announcement, and with a market capitalization now more than $700 million, investors betting on a trillion dollar valuation have piled into the growth company in droves, displaying long-term confidence in the ability of the tech company to continue to drive ad revenues no matter how consumers choose to take in content.
Growing revenues for Alphabet have continued to be partially eaten away by higher acquisition costs, with the price paid by Alphabet to attract traffic to its search engine increasing more than 30% year over year. Despite these increases, Alphabet’s margins remain some of the strongest in its industry, driving expectations that Alphabet will be able to drive long-term growth in some of the company’s smaller segments which continue to post losses.
The company’s losses from some of its most high-profile “bets” have narrowed from $861 million U.S. to $812 million U.S., indicating a continued refocusing from Alphabet’s management team on its core businesses is likely to help drive profitability in the quarters to come.
Alphabet remains one of the best long-term plays for any investor seeking a stable growth name in the tech space.
Invest wisely, my friends.
