Why Alphabet Stock Soared Higher This Week
Shares of (NASDAQ: GOOG) have rallied as much as 11.4% this week, according to data provided by S&P Global Market Intelligence. The technology giant and owner of Google, YouTube, Android, and many other consumer internet services posted strong second-quarter earnings, which had investors bidding up shares of the stock. As of 2:26 PM EST, shares of Alphabet are up around 10% this week and are now only 12% off all-time highs.
Alphabet saw a recovery in revenue growth for the second quarter of 2023. Revenue grew 9% year over year in constant currency, with the operating margin expanding from 28% in 2022 to 29% in 2023. This led to an operating profit of $21.8 billion for the period.
Some key drivers of revenue growth were Google Cloud and the Google Other category. Google Cloud grew revenue 28% year over year to $8 billion and is finally seeing operating leverage, with operating profit swinging from a loss of $590 million in 2022 to a positive $395 million in 2023. Google Cloud has been unprofitable for many years now, so it is nice to see major investments into the segment finally bearing fruit. Investors should look for Google Cloud margins to continue expanding over the next few years.
Source Fool.com
Alphabet Inc. A Stock
With 83 Buy predictions and not a single Sell prediction Alphabet Inc. A is an absolute favorite of our community.
With a target price of 169 € there is a slightly positive potential of 4.1% for Alphabet Inc. A compared to the current price of 162.34 €.
