GOOGL
💰 Google’s primary revenue stream remains digital advertising, driven significantly by its dominant search engine and the rapidly growing YouTube platform.
📈 Despite its massive scale, Google continues to exhibit double-digit revenue growth (12% YoY in the last quarter), fueled by search (10%), YouTube ads (10%), and especially Google Cloud (28%).
☁️ Google Cloud is a key growth engine, rapidly gaining market share in the competitive cloud computing space against giants like Amazon and Microsoft, contributing significantly to overall revenue.
@ClaveBursatilTV:
“Firstly, remember how this company generates money. It’s a company with different business units, primarily digital advertising. Within digital advertising, the most representative business, the one generating the most income, is its search engine, through which people search for things online, and some advertisers pay to appear there, placing ads. Today, it’s the company’s most important business. On the other hand, we have the entire YouTube platform, where the company also charges for advertising. Consider this fact, which I find fabulous: all the revenue Google generates from YouTube equals all the revenue Netflix has. This means that with just one business unit, this company already generates the same amount of revenue as Netflix entirely. Furthermore, within the digital advertising business, we have the Admobile part, which is advertising within applications. Outside of digital advertising, Google also has diversified businesses like Google Play, the application business. There, Google charges a small commission for paid applications. So, if you, as a developer, put your application on Google Play and someone pays to download it, a small commission goes to the company, to Google. Then we have paid subscriptions for YouTube Premium, Pixel (Google’s smartphones), the Google Nest business segment (smart home devices), and Fitbit (smart bracelets, vital bands, etc.). And on the other hand, a business that has been growing very strongly in recent years is the entire cloud computing part, Google Cloud, which includes cloud infrastructure. This business has been growing strongly in recent years, where today we have three main players concentrating almost the entire market share: Amazon, Microsoft, and Google. Google is in third place but has been gaining market share in recent years. Okay, having said that, let’s now see how this last quarter evolved. We can see that revenues from the search engine grew by 10%. Advertising revenues within YouTube grew by 10% year-over-year, and the part of advertising on mobile devices fell by 2%. Overall, the entire digital advertising segment grew by 8% year-over-year, generating almost $67 billion. On the other hand, all the businesses we discussed earlier grew by 19% year-over-year, generating over $10 billion. And the Google Cloud part generated over $12 billion, growing at a rate of 28% year-over-year. All this resulted in company revenues of $90.2 billion, growing at a rate of 12% year-over-year. Thus, we can see that despite being a company with a very large revenue level and quite consolidated businesses with competitive advantages, it continues to grow its revenues at double digits. Not only that, but it also has very good profitability margins: a gross margin of 60%, an operating margin of 34%, and a net margin of 38%.”
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