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Numbers: - Q1 EPS $1.21 vs EST $1.32 - Q2 Rev. of $70B vs est of $70B - Ad Rev. $56.3B vs EST of $56B, grew 12% on the year, good job!! but growth is way dow
by chollida1 4y ago
Numbers:
- Q1 EPS $1.21 vs EST $1.32
- Q2 Rev. of $70B vs est of $70B
- Ad Rev. $56.3B vs EST of $56B, grew 12% on the year, good job!! but growth is way down from last year.
- this add revenue is good, which indicates they aren't really affected by the Iphone privacy changes like META is.
- operating margin came in at estimates
- cloud lost $858M which is higher than expected
- cloud Rev was 6.2B which is about what was expected
- Other Bets lost $1.7B, which is small enough no one will care
- other best revenue is $190M
- stock is down about 24%, wich is a beta of almost 1, maybe googles growth is done and its becoming a typical old boring stock that just makes money now
To Watch:
- all advertising is slowing, Twitter, Snap and Pins are all below their IPO price and META is down big, whatch for GOOG advertising, though normally you'd expect search advertising to be more resistant
- watch youtube add numbers, it really seems like they are playing alot more adds, normally I see 2 before each video now
- will google cloud start to approach the big 2 of azure and aws
- will they talk about hiring or layoffs
Notes:
- add revenue held up ok, compared to peers
- other bets continues to not matter, at some point waymo has to put up or get shut down
- will cash on hand grow or shrink? Looks like its down by about $10B
- cloud unit disappoints with revenue
- shares relatively flat after hours( up maybe 2%), probably a good trade to buy their peers now(snap, pins, etc, meta)
- whoever runs Google cloud must have blackmail material on Pichai, AWS and MSFT run big profitable operating margins and google cloud is losing money, this is something they should be good at, but they are somehow the only one that has figure dout how to lose money on what is a cash cow for the big 2.
What is going on with their cloud offering??
- zero hedge tweet that they've repurchased $15B of stock
- deleted 4y ago[deleted]
- shawabawa3 4y ago> stock is down about 24% I thought you meant it had massively crashed on this earnings It's down ~24% YTD (along with basically every other stock). Up ~2% after hours on this earnings report
- oneoff786 4y agoWhy is cloud a loss for Google but a cash cow for Amazon?
- gerbler 4y agoLots of capex
- Kstarek 4y agoBecause Google is playing catch up and needs to pay higher salaries to poach from MSFT and AMZN and also pay much more for infra than what Amazon paid for theirs initially.
- fdgsdfogijq 4y agoGoogle has been "playing catch up" for a decade now. They also pay less than Amazon (source levels.fyi)
- scottyah 4y agoFrom what I hear they paw software engineers less, but find it harder to attract sales personnel, as it’s easier to sell the industry leader (IBM, Oracle vs ???). No sources, just some posts a few months ago.
- arebop 4y agoGoogle does not pay less than Amazon (source levels.fyi https://www.levels.fyi/?compare=Amazon,Google,Salesforce&track=Software%20Engineer https://www.levels.fyi/?compare=Amazon,Google,Salesforce&tra...). I have heard people claim that Amazon pays more and by that they mean that if you hold your Amazon stock until vesting, it appreciates so much that it ends up being worth more than whatever the Google grant would have been worth. But then you have to ask if the relative performance of the stocks will remain stable over time despite having changed recently, and factor in differences in employee churn and so on.
- fdgsdfogijq 4y ago
- Kstarek 4y agoI don't think Waymo will contribute meaningfully to the bottom line for at least another 3/4 years, however people had the same mentality of "put up or get shut down" regarding YouTube a few years ago, and we all know how that turned out. That said, I'm still very bullish on both the stock and Waymo specifically.
- bushbaba 4y agoWaymo won't contribute meaningfully for at least 2 decades. Bottom line = profit. Top line = revenue.
- ceeplusplus 4y agoAdding more ads and bringing down video serving costs are tangible, achievable goals. Solving self driving is not. I honestly don't think Google has the right culture to deliver either. There's no hunger to win there.
- ghaff 4y agoI'm not sure self driving is a matter of Google culture. It's just become pretty evident that, while maybe some limited fully self-driving use cases will become viable in the next decade or two, this idea that you can have your personal chauffeur whisk you door to door even in an urban environment perhaps in your lifetime so you never need to own a car is not happening. And that really disappoints some people who bought into the idea.
- colinmhayes 4y agoI certainly hope AGI happens in my lifetime.
- ghaff 4y ago1. I doubt it 2. Be careful what you wish for
- minwcnt5 4y ago
- dmitriid 4y agoMain numbers are these: --- start quote --- - Q2 Rev. of $70B vs est of $70B - Ad Rev. $56.3B --- end quote --- 80% of revenue is advertising. That's all you need to know about the company's direction and incentives.
- verdverm 4y agoI would submit that knowing the trend of ad revs as a percentage of the whole would tell you more than a single snapshot, which has no direction itself.
- cromwellian 4y agoThat’s down from 97%+, the direction is more important than the current number since the change over time indicates how the company is evolving and it is obviously moving towards diversification.
- dmitriid 4y agoIt has been hovering around 80% for a few years now, hasn't it?
- azinman2 4y agoIt's their cash cow. Why would they stop? But that 20% isn't advertising is much better for Alphabet than compared to 10 years ago. Waymo is the next big bet.
- sidibe 4y ago> at some point waymo has to put up or get shut down obviously noone is expecting significant revenue there last quarter or any near future ones so it's pretty irrelevant how they do on quarterly reports. It's been over a decade and they seem to now be making serious progress. That "some point" isn't going to be this quarter or next quarter or sneak up by surprise on anybody
- hrpnk 4y ago> - this add revenue is good, which indicates they aren't really affected by the Iphone privacy changes like META is. ad density would be an interesting figure. YouTube is unwatchable with ads turned on.
- ghaff 4y agoThat sounds like the sorts of results that tend to hammer a company. Some barely beats on low expectations. A bunch of expectations barely or misses.
- lumost 4y agoLikely, google perceives that their cloud losses are about on par with what they’d lose on software/other expenses if they shut down gcp and continued in house with their infrastructure (rightly or wrongly). Compared to other bets, the loss is not large compared to growth opportunity. however the absolute numbers in these losses are interesting in and of themselves. There are clearly extremely large divisions which produce negligible revenue, let alone profit.
- stingraycharles 4y agoWasn’t the whole problem with Google Cloud that they did, in fact, not dogfood this and their internal infra is completely separated?