GOOGL - Google Surges Past $2 Trillion But Looks Cheap Still
2024-04-27 08:39:32 ET
Summary
- Google's Q1 2024 earnings exceeded analyst expectations, with revenue and operating income up 15% and 46% YoY, respectively.
- The company's strong performance was driven by commercial acceleration in YouTube ads, Google Search, and Cloud.
- Looking towards the rest of 2024, I am bullish on Google's ability to deliver on more upside, as the digital advertising market is recovering.
- Meanwhile, Google is seeing healthy momentum in the cloud business, which is growing at an approximately 25% YoY topline rate and increasingly becoming a key profit growth driver for the group.
- I am confident to reiterate my "Buy rating"; and on the backdrop of better-than expected earnings momentum, I raise my base case target price to $201/ share.
Google (GOOG) (GOOGL) stock intermittently surged as much as 15% in after-market trading, following the company's release of the Q1 2024 report: In essence, Google pretty much smashed analyst consensus expectations on all metrics, including revenue and profit growth, as well as capital distribution. In the first quarter, Google's revenue and operating income expanded 15% YoY and 46% YoY, as commercial momentum in Search and YouTube accelerated notably. Reflecting on Google's Q1 results, I am confident to reiterate my "Buy rating"; and on the backdrop of better-than expected earnings momentum, I raise my base case target price to $201/ share. ...
Google Surges Past $2 Trillion But Looks Cheap Still