META - Google Q1: Cloud Growth Acceleration And Margin Improvement Are Important

2024-04-29 12:10:02 ET

Summary

• Alphabet/Google's Q1 results beat market expectations, with a 14.4% increase in Google Search revenue and a 28.4% YoY growth in their cloud business.
• The operating margin of Google Cloud has shown steady improvement, indicating potential for future margin expansion.
• Alphabet's AI models, including Gemini, are being implemented across their advertising ecosystem, strengthening their core advantage in the digital advertising market.

In my previous article , I expressed my bullish view on Alphabet Inc. aka Google (GOOGL), highlighting the normalization of the advertising business, and their AI model of Gemini. Alphabet released their Q1 FY24 result on April 25 ^th , beating the market expectations. Their advertising business continues the growth momentum with a 14.4% increase in Google Search. Most importantly, their cloud business grew by 28.4% year-over-year, and the operating income more than quadrupled to $900 million....

For further details see: