GOOGL - Google Is Alive And Well But I'm Moving To The Sidelines (Rating Downgrade)
2024-04-25 19:33:10 ET
Summary
- Q1 2024 earnings from Alphabet beat expectations with a strong performance in Search, YouTube, and Google Cloud.
- Despite increased AI infrastructure capex spending, the company's cost-cutting initiatives are yielding higher operating margins and FCF, which the company is promptly returning to shareholders.
- As a shareholder, I'm happy with Alphabet's healthy business performance and capital return plans - $70B new buyback and first-ever $0.20 per share quarterly dividend.
- However, Alphabet's valuation is now too rich, and long-term risk/reward warrants a rating downgrade.
Reviewing Alphabet's Q1 2024 Earnings Report
In Q1 2024, Alphabet (NASDAQ: GOOG ) (NASDAQ: GOOGL ) delivered a beat on both top and bottom lines (Revenue: $80.54B [+15% y/y] vs. est. $78.70B & EPS: $1.89 [+61% y/y] vs. est. $1.50). ...
Google Is Alive And Well, But I'm Moving To The Sidelines (Rating Downgrade)