2024-04-26 05:36:21 ET
Summary
- Google's strong Q1 earnings resulted in a 12% increase in share price after-hours.
- The tech company beat Q1 estimates with strong results in digital advertising and Cloud, leading to a sequential revenue acceleration and expanding free cash flow margins.
- Google's free cash flow strength has led to the announcement of a cash dividend, making the stock attractive to more investors.
- Shares remain undervalued, and Google has four catalysts for a continual upside revaluation.
Alphabet's (GOOG) (GOOGL) strong earnings sheet for the first fiscal quarter resulted in a 12% upsurge in Google’s share price after-hours and the technology company seems set for a new up-leg in the near future as well. Google reported much better than expected results due to a strong, continual recovery in the digital advertising market as well as consistent results in Cloud. Google especially convinced with strong free cash flow margins which led to another surprise: the tech company announced the introduction of a cash dividend which is set to boost investors’ total returns going forward. The dividend initiation is a game-changer for Google and I believe the risk profile remains skewed to the upside!...
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For further details see:
Google: At The Cusp Of An Upside Breakout