Alphabet (GOOG, GOOGL) 02 (Aug 17 - Dec 25)

[winston]

not vested

Alphabet Inc. – Focused on reducing expense base

PSR Recommendation: BUY
Target Price: 131

4Q22 results was within expectations on both revenue and earnings.

FY22 revenue/PATMI is at 99%/95% of our FY22e forecasts.

Adj. PATMI (excl. unrealised losses) is at 100% of our forecasts.

Revenue was dragged by 2% YoY decline in ad revenue, and 6% FX headwinds.

Cloud momentum is still strong with 32% YoY growth for 4Q22. But there was a -US$480mn operating loss.

Cloud accounts for only 10% of total revenue.

Slowing FY23e expenses growth with 12,000 job cuts in 1Q23e, reducing office facilities, and more prudent investments.

Guidance for FY23e CAPEX is roughly in line with FY22 We cut our FY23e revenue forecast by 9% to account for continued weakness in digital advertising demand, while reducing CAPEX spend by 20% to reflect a general slowdown in expenses.

Our FY23e EBITDA forecasts are also cut by 17% to reflect slower-than- anticipated margin expansion due to expected US$2.3bn severance-related charges.

We maintain BUY with a raised DCF target price of US$131.00 (prev. US$124.00) due to potential upside from increasing YouTube Shorts monetisation, continued strength in Cloud, and margin expansion in FY24e from the slowing pace of expense growth as a % of revenue, with a WACC of 7.3% and terminal growth of 3.5%.

Source: Phillips

https://www.stocksbnb.com/reports/alpab ... ense-base/

[behappyalways]

Google To Roll Out ChatGPT Rival Powered By 'Sentient' AI
https://www.zerohedge.com/political/goo ... entient-ai

[winston]

vested

Alphabet Loses Over $110 Billion Market Cap After AI ChatBot 'Glitch'

BY TYLER DURDEN

"What new discoveries from the James Webb Space Telescope (JWST) can I tell my 9-year old about?"

BARD responds with a number of answers, including one suggesting the JWST was used to take the very first pictures of a planet outside the Earth’s solar system, or exoplanets.

This is inaccurate.

The first pictures of exoplanets were taken by the European Southern Observatory’s Very Large Telescope (VLT) in 2004, as confirmed by NASA.

The falsehood will raise further questions about the accuracy of search engines and of AI-generated answers to humans’ questions.

Fears have been raised about inaccuracies generated by artificial intelligence systems which are not easily spotted by humans.

Source: Zero Hedge

https://www.zerohedge.com/markets/googl ... -ai-glitch

[behappyalways]

Can Bing and OpenAI Challenge Google? Microsoft's Satya Nadella Weighs In (Exclusive) | WSJ
https://m.youtube.com/watch?v=bsFXgfbj8Bc

$MSFT CEO is declaring war:
"From now on, the [gross margin] of search is going to drop forever...There is such margin in search, which for us is incremental. For Google it’s not, they have to defend it all"
https://mobile.twitter.com/TheTranscrip ... 6643064833

[winston]

vested

A No-Brainer Stock to Buy No Matter What Happens With the Stock Market

by Neil Patel

After posting a stellar annual revenue gain of 41% in 2021, Alphabet hit the brakes in 2022, increasing overall sales by only 9.8% for the year.

A sizable chunk of Alphabet’s total revenue — 78% in 2022 — comes from advertising.

Source: The Motley Fool

https://dailytradealert.com/2023/02/14/ ... ck-market/

[behappyalways]

Bard AI Is Boring: Google Explains Why They Want It That Way | WSJ
https://m.youtube.com/watch?v=J9rMC33Kpo8

[winston]

not vested

If I Could Only Buy 1 Stock, This Would Be It

by Anders Bylund

The stock trades at 24 times trailing earnings and free cash flow (FCF).

At the same time, the revenue line shows a five-year compound annual growth rate (CAGR) of 20.6%.

For bottom-line earnings, the five-year CAGR stands at 23.3%.

Source: The Motley Fool

https://dailytradealert.com/2023/04/08/ ... uld-be-it/

[behappyalways]

Google may lose search on Samsung Devices to Microsoft Bing: NYT
https://www.theedgesingapore.com/digita ... t-bing-nyt

[winston]

not vested

Alphabet, Inc. (GOOG) is scheduled to release its first-quarter earnings after market close on Tuesday, April 25.

Analysts expect earnings of $1.06 per share, a 13.8% year-over-year decrease from earnings of $1.23 per share in the same quarter of last year.

Revenue is estimated to increase 1.2% year-over-year to $68.81 billion, up from revenue of $68.01 billion in the same quarter a year ago.

Source: Investor Place

[winston]

not vested

Google-parent Alphabet’s revenue beats on ad, cloud strength

Buy back US$70 billion in stock and posted first-quarter profit and revenue above estimates as demand rose for cloud services and ad sales held up better than expected.

Turning a profit in cloud computing but “the reality is that Google Cloud remains comfortably behind its two most important competitors, and its growth is slowing. Sales for the unit rose to 28 per cent to US$7.41 billion.

Slight dip in ad sales to US$54.55 billion from US$54.66 billion a year earlier.

Source: Reuters

https://www.businesstimes.com.sg/compan ... d-strength