GOOGL - Alphabet: Exceptional Q4 Supports Low-Teens Annualized Return Investment Case

• Alphabet reported "exceptional" Q4 2020 results overnight, sending shares up 7.2% post-market and supporting our long-term Buy case.
• Google ad revenues were up 24.5% from Q3 and 21.8% year on year, thanks to a broad-based rebound in ad spend, especially among retailers.
• For full-year 2020, despite COVID-19, revenues were up 6.1% in Search & Other and 30.5% in YouTube Ads; Google Cloud grew 46.4%.
• Helped by cost control during the outbreak, comparable EBIT grew 14.7% year on year in 2020; lapping a prior-year fine, EPS grew 19.2%.
• At $1,927.51, shares can have an exit price of $3,160 and a total return of 79% (13.4% annualized) in 4 years, by 2024 year-end. Buy.

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