Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) released its first-quarter 2021 earnings on April 27, beating analyst estimates by a wide margin. The tech giant's shares are now up 25% in the past three months alone, topping the S&P 500 's performance during that timespan.
With the stock price up significantly and a market cap north of $1.5 trillion, investors might think they've missed the boat with Alphabet. But that couldn't be further from the truth. Here's why stock in Google's parent company is still a good value after its first-quarter earnings pop.
Alphabet's first-quarter earnings were simply fantastic. Revenue was up 34% year over year to $55.3 billion with operating income more than doubling to $16.4 billion. Alphabet two main segments, Google and Other Bets. The Google segment has several subsidiaries within it. Going deeper into Google's subsidiaries, YouTube grew its sales a whopping 50% year over year to $6 billion in this latest quarter, which is almost as much as Netflix grossed in the first quarter. If YouTube keeps up these high double-digit percentage growth rates, it will be doing more in annual sales than Netflix sometime soon. Google's Cloud business didn't disappoint either, growing sales 46% year over year to $4 billion in the first quarter.
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Why Alphabet Stock Is Still a Good Value After Its Latest Earnings Pop