Alphabet Stock Tumbles: This Is A Buying Opportunity?

Seeking Alpha2023-10-25

Alphabet Inc. aka Google reported strong Q3 earnings, beating estimates and showing growth in ad revenue.Despite the positive results, Alphabet's shares dropped 6% in after-hours trading.The share ...

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Chilli Padi
·2023-10-25
There must be some reasons why Google slumped despite beating targets. Due consideration should be given not only to Google performance per se but that in comparison to its competitors in industry, especially to a variable that is placed of high importance like the cloud business. No doubt Google has increased 20% in this area but I think performance should be compared to its rival microsoft who also beat earnings estimate yet the share price increased post market as I think mainly due to its cloud businesss that jumped 29% in the quarter beating wall street estimate of 27%.
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- Chilli Padi:
  Dont despair. Whichever way Mr Market bring us, there is always opportunity to make money-only that you must tailor your strategy to a “down” market. Goodluck to u & everyone too
  2023-10-26
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- WebbBart:
  The whole market is an crash for weeks. The recession is there. If google after good earnings goes down 8 per cent, we gonna see bad weeks. Good Luck we all gonna lose money
  2023-10-25
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Andrewinho
·2023-10-25
Yes, great business!! 🤭🤭🤭
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TigerHulk
·2023-10-25
Load more while the rest are offloading. This offer great opportunities to transfer the wealth from the impatience to the patience.
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The company beat estimates easily and reported great ad revenue growth, and yet shares slumped by 6% in after-hours trading. I believe that this does not make a lot of sense and that Alphabet is attractively priced right here. What Happened?Alphabet Inc. reported its third-quarter earnings results on Tuesday evening. The company's shares are down 6% in after-hours trading at the time of writing. What caused this share price slump?The answer is no -- Alphabet beat estimates easily, by almost $1 billion. Did Alphabet miss profit estimates?Again, th","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"GOOGL":"谷歌A","BK4585":"ETF&股票定投概念","LU0097036916.USD":"贝莱德美国增长A2 USD","BK4507":"流媒体概念","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","BK4576":"AR","LU2087621335.USD":"ALLSPRING GLOBAL FACTOR ENHANCED EQUITY \"A\" (USD) ACC","LU0320765059.SGD":"FTIF - Franklin US Opportunities A Acc SGD","BK4566":"资本集团","LU0861579265.USD":"联博低波幅策略股票基金A","LU0444971666.USD":"天利全球科技基金","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU0786609619.USD":"高盛全球千禧一代股票组合Acc","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","BK4077":"互动媒体与服务","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","BK4538":"云计算","BK4550":"红杉资本持仓","LU0289941410.SGD":"AB FCP I Dynamic Diversified AX SGD","GOOG":"谷歌","LU1316542783.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD","LU0211328371.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (MDIS) (USD)   INC","LU0557290698.USD":"施罗德环球可持续增长基金","IE00B775SV38.USD":"NEUBERGER BERMAN US MULTICAP OPPORTUNITIES \"A\" (USD) ACC","BK4561":"索罗斯持仓","LU1839511570.USD":"WELLS FARGO GLOBAL FACTOR ENHANCED EQUITY \"I\" (USD) ACC","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","LU0642271901.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD-H","LU0456855351.SGD":"JPMorgan Funds - Global Equity A (acc) SGD","LU2237443382.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA USD","LU0048573561.USD":"FIDELITY AMERICA \"A\" (USD) INC","IE00BJTD4V19.USD":"NEUBERGER BERMAN US LONG SHORT EQUITY \"A1\" (USD) ACC","LU0312595415.SGD":"Schroder ISF Global Climate Change Equity A Acc SGD","LU0056508442.USD":"贝莱德世界科技基金A2","LU2237443549.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA SGD-H","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","LU1803068979.SGD":"FTIF - Franklin Technology A (acc) SGD-H1","LU0640476718.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQ \"AU\" (USD) ACC","BK4514":"搜索引擎","LU0310800379.SGD":"FTIF - Templeton Global A Acc SGD","LU2237443622.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc USD","LU2265009873.SGD":"Eastspring Investments - Global Growth Equity AS SGD-H","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","LU2237443978.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc SGD-H","LU0109392836.USD":"富兰克林科技股A","LU0149725797.USD":"汇丰美国股市经济规模基金","BK4553":"喜马拉雅资本持仓","LU0310800965.SGD":"FTIF - Templeton Global Balanced A Acc SGD","LU0175139822.USD":"AB FCP I Global Equity Blend A USD"},"translate_title":"Alphabet股市暴跌：这是一个买入机会？","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"GOOG":1,"GOOGL":1},"content_text":"Alphabet Inc. aka Google reported strong Q3 earnings, beating estimates and showing growth in ad revenue.Despite the positive results, Alphabet's shares dropped 6% in after-hours trading.The share price decline presents a buying opportunity, as Alphabet is attractively priced and has strong operational results.sjharmon/E+ via Getty ImagesArticle ThesisAlphabet Inc. (NASDAQ:GOOG, NASDAQ:GOOGL) aka Google reported its most recent quarterly results on Tuesday evening. The company beat estimates easily and reported great ad revenue growth, and yet shares slumped by 6% in after-hours trading. I believe that this does not make a lot of sense and that Alphabet is attractively priced right here.What Happened?Alphabet Inc. reported its third-quarter earnings results on Tuesday evening. The company's shares are down 6% in after-hours trading at the time of writing.What caused this share price slump? Did Alphabet miss revenue estimates? The answer is no -- Alphabet beat estimates easily, by almost $1 billion. Did Alphabet miss profit estimates? The answer is no: The company beat profit estimates by 7%. Did Alphabet experience a major margin decline compared to the previous year's quarter? Again, the answer is no: Alphabet's operating margin expanded by a nice 300 base points compared to one year earlier.So, if these numbers looked good, was there a problem in one of Alphabet's important growth units? Again, things looked good there: Google Search and YouTube grew by double-digits, and Google Cloud grew by well above 20% compared to the previous year's quarter.In short, there were many things to like, and GOOG beat analyst estimates very easily -- which is why the share price reaction is confusing and seems rather irrational to me. Of course, things such as a sell-the-news mindset or profit-taking could explain the market reaction, but I believe that the combination of strong operational results and a share price decline makes for a nice buying opportunity for investors interested in entering or expanding a position in Alphabet. Here's a screenshot from Seeking Alpha showing the headline numbers:Seeking AlphaLet's delve into the numbers and the many positives from Alphabet's most recent quarterly earnings report.GOOG Q3: Many Things To LikeLet's start with Alphabet's top line: 11% revenue growth was the best result over the last five quarters, as the company's growth rate was in the 1% to 7% range in the previous four quarters. With growth now in the double-digits once again, Alphabet has clearly experienced a major acceleration, and momentum is on the company's side. This compelling revenue growth was driven by strong results across different business units.As noted above, Search saw its sales expand by more than 10%, which was a huge improvement over the recent trend -- in the previous four quarters, Search growth averaged just 1%. It looks like the advertising slowdown that had negatively impacted Alphabet and many of its peers in the recent past has ended, which could be due to the fact that the economy has remained resilient. A recession, which many investors and companies had worried about over the last year, has not materialized so far. While some businesses had scaled back their advertising spending in anticipation of a slowdown, which explains why Alphabet's Search revenue growth was weak over the last four quarters, things are now looking up again: with recession worries easing and Alphabet facing easier comparisons, Search revenue growth should remain strong over the coming quarters, I believe.YouTube, which is a large cash cow for Alphabet, has seen compelling growth as well, with the ad market recovery due to a recession not happening playing a role in the better-than-expected performance as well.It is also worth looking at the impact of the U.S. Dollar exchange rate versus other major currencies during the quarter. Alphabet had faced headwinds from a strengthening U.S. Dollar (DXY) in the recent past, which is why there was a big difference of 500 base points between Alphabet's reported revenue growth rate and its currency-neutral revenue growth rate one year ago. During this year's third quarter, both the reported and the currency-neutral revenue growth rate stood at 11%, thus currency rates have stopped being a headwind for the company -- which is good news, and which is an argument for GOOG growing its revenue at an attractive rate in the coming quarters as well, assuming the U.S. Dollar does not strengthen a lot from here.When we look at the business growth performance, it is also worth taking a detailed look at the cloud business. It is true that Google Cloud's revenue growth decelerated from the previous quarter (28%) and also from the previous year's quarter (38%), coming in at 23% during Q3 of 2023. The market seemed to dislike that, but I don't think this is a major problem. And I also don't think this growth slowdown justifies a $100 billion market capitalization slump, which is what the 6% share price slump following the earnings release implies. Why do I believe that the Google Cloud result was far from bad despite growth being slower than during the previous quarter?First, Google Cloud set a new record: Q3 of 2023 was its best quarter ever, with sales of $8.4 billion, versus a previous record of $8.0 billion.Second, revenue growth of more than 20% remains highly compelling, thus growth definitely remained strong on an absolute basis.Third, a decline in the unit's relative growth rate over time is perfectly normal. The law of large numbers dictates that it is not possible for a business to maintain a very high relative growth rate forever -- a declining growth rate, in relative terms, is a mathematical certainty. It thus shouldn't surprise investors too much to see this play out at Google Cloud as well.Fourth, even if Alphabet had managed to keep the relative growth rate in line with the previous quarter, cloud revenues would have been higher by just $400 million or so. Would a $400 million revenue difference justify a $100 billion market capitalization difference? I do not believe that this makes a lot of sense, so the share price slump seems way overdone.Getting back to the positive things from the report, Alphabet managed to further improve its cost position. During the pandemic, many tech companies over-hired and saw their salary costs explode, which caused some margin pressures over the last two years. But thanks to cost-cutting efforts, which include headcount reductions, Alphabet has turned the corner. The company's operating income margin soared by 300 base points to 28%. Combined with the aforementioned compelling revenue growth, this margin expansion allowed Alphabet to grow its operating income by a hefty 25% -- for a company that had earned a hefty $17 billion during the previous year's quarter, that's a very impressive profit growth rate, I believe.Net income growth was even better, at 42% year over year, but it is important to note that this is at least partially due to a substantial improvement in the other income/expense line. It is unlikely that this will be a new trend, thus I believe that net income growth will be more in line with operating income growth in the future. But between double-digit revenue growth and margin tailwinds, this should be good enough for a quite attractive profit growth rate.Finally, earnings per share will likely grow faster than operating and net profits, due to Alphabet's buybacks. At least that was the case during Q3, when a lower share count allowed the company to grow its earnings per share by 46% versus 42% for company-wide net income.Alphabet has a fortress balance sheet with a massive cash position of $120 billion. Utilizing some of that cash, and some of Alphabet's hefty free cash flows, makes a lot of sense -- shares look far from expensive, and buying them back now could provide a lot of value in the long run. After all, Alphabet has generated $62 billion in free cash flows in 2023 so far -- capital expenditures of more than $20 billion are already accounted for. This implies full-year free cash flows in the $80 billion range, allowing Alphabet to spend massive amounts of cash on buybacks if it wants to.Alphabet: Attractive At The Current PriceWhile a better growth rate for the cloud business would have been better, the most recent quarter was still very positive overall, I believe. Search growth accelerated, overall revenue growth was strong, margins are expanding quickly thanks to successful cost-cutting efforts, and operating profit growth in the 25% range is excellent for a large company such as Alphabet.Add ongoing buybacks and a fortress balance sheet with $120 billion of cash, and Alphabet looks even better. At the after-hours share price of $132, the company is trading for just 22x forward earnings. Since 2024 starts in just over two months, we can also look at that year: The P/E ratio is just 19. I believe this makes for a very attractive investment opportunity and am looking forward to expanding my position in GOOG.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":234289342198024,"gmtCreate":1698208498247,"gmtModify":1698208503459,"author":{"id":"4103449635847630","authorId":"4103449635847630","name":"Chilli Padi","avatar":"https://community-static.tradeup.com/news/506e0f8972cf66e2ce193c479e4bcb64","vip":1,"hat":"https://static.tigerbbs.com/4c5ceab71416b120bab4604c0754b52a","crmLevel":8,"crmLevelSwitch":1,"idStr":"4103449635847630","authorIdStr":"4103449635847630"},"htmlText":"There must be some reasons why Google slumped&nbsp;despite beating targets. &nbsp;Due consideration should be given not only to Google&nbsp;&nbsp;performance per se but that in comparison to its&nbsp;competitors in industry, especially to a variable that is placed of high importance like the cloud&nbsp;business. No doubt&nbsp;Google has increased 20%&nbsp;in this area but I think performance should be compared to its rival microsoft who also beat earnings estimate yet the&nbsp;share price increased post market as I think mainly due to its cloud businesss that jumped 29% in the quarter beating wall street estimate of 27%.","listText":"There must be some reasons why Google slumped&nbsp;despite beating targets. &nbsp;Due consideration should be given not only to Google&nbsp;&nbsp;performance per se but that in comparison to its&nbsp;competitors in industry, especially to a variable that is placed of high importance like the cloud&nbsp;business. No doubt&nbsp;Google has increased 20%&nbsp;in this area but I think performance should be compared to its rival microsoft who also beat earnings estimate yet the&nbsp;share price increased post market as I think mainly due to its cloud businesss that jumped 29% in the quarter beating wall street estimate of 27%.","text":"There must be some reasons why Google slumped despite beating targets. Due consideration should be given not only to Google performance per se but that in comparison to its competitors in industry, especially to a variable that is placed of high importance like the cloud business. No doubt Google has increased 20% in this area but I think performance should be compared to its rival microsoft who also beat earnings estimate yet the share price increased post market as I think mainly due to its cloud businesss that jumped 29% in the quarter beating wall street estimate of 27%.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/234289342198024","repostId":2378455059,"repostType":4,"repost":{"id":"2378455059","kind":"highlight","pubTimestamp":1698206100,"share":"https://ttm.financial/m/news/2378455059?lang=&edition=fundamental","pubTime":"2023-10-25 11:55","market":"us","language":"en","title":"Alphabet Stock Tumbles: This Is A Buying Opportunity?","url":"https://stock-news.laohu8.com/highlight/detail?id=2378455059","media":"Seeking Alpha","summary":"Alphabet Inc. aka Google reported strong Q3 earnings, beating estimates and showing growth in ad revenue.Despite the positive results, Alphabet's shares dropped 6% in after-hours trading.The share price decline presents a buying opportunity, as Alphabet is attractively priced and has strong operational results.   sjharmon/E+ via Getty Images Article Thesis Alphabet Inc.  aka Google reported its most recent quarterly results on Tuesday evening. The company beat estimates easily and reported great ad revenue growth, and yet shares slumped by 6% in after-hours trading. I believe that this does not make a lot of sense and that Alphabet is attractively priced right here. What Happened?Alphabet Inc. reported its third-quarter earnings results on Tuesday evening. The company's shares are down 6% in after-hours trading at the time of writing. What caused this share price slump?The answer is no -- Alphabet beat estimates easily, by almost $1 billion. Did Alphabet miss profit estimates?Again, th","content":"<html><head></head><body><ul style=\"\"><li><p>Alphabet Inc. aka Google reported strong Q3 earnings, beating estimates and showing growth in ad revenue.</p></li><li><p>Despite the positive results, Alphabet&#39;s shares dropped 6% in after-hours trading.</p></li><li><p>The share price decline presents a buying opportunity, as Alphabet is attractively priced and has strong operational results.</p></li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/33ffa6ba327188fbd4fdf3ed1d649768\" alt=\"sjharmon/E+ via Getty Images\" title=\"sjharmon/E+ via Getty Images\" tg-width=\"750\" tg-height=\"580\"/><span>sjharmon/E+ via Getty Images</span></p><h2 id=\"id_3391202723\">Article Thesis</h2><p><strong>Alphabet Inc.</strong> (NASDAQ:GOOG, NASDAQ:GOOGL) aka <strong>Google</strong> reported its most recent quarterly results on Tuesday evening. The company beat estimates easily and reported great ad revenue growth, and yet shares slumped by 6% in after-hours trading. I believe that this does not make a lot of sense and that Alphabet is attractively priced right here.</p><h2 id=\"id_3284661375\">What Happened?</h2><p>Alphabet Inc. reported its third-quarter earnings results on Tuesday evening. The company&#39;s shares are down 6% in after-hours trading at the time of writing.</p><p>What caused this share price slump? Did Alphabet miss revenue estimates? The answer is no -- Alphabet beat estimates easily, by almost $1 billion. Did Alphabet miss profit estimates? The answer is no: The company beat profit estimates by 7%. Did Alphabet experience a major margin decline compared to the previous year&#39;s quarter? Again, the answer is no: Alphabet&#39;s operating margin expanded by a nice 300 base points compared to one year earlier.</p><p>So, if these numbers looked good, was there a problem in one of Alphabet&#39;s important growth units? Again, things looked good there: Google Search and YouTube grew by double-digits, and Google Cloud grew by well above 20% compared to the previous year&#39;s quarter.</p><p>In short, there were many things to like, and GOOG beat analyst estimates very easily -- which is why the share price reaction is confusing and seems rather irrational to me. Of course, things such as a sell-the-news mindset or profit-taking could explain the market reaction, but I believe that the combination of strong operational results and a share price decline makes for a nice buying opportunity for investors interested in entering or expanding a position in Alphabet. Here&#39;s a screenshot from Seeking Alpha showing the headline numbers:</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/9e222e992b1fe1f16f160d943fd8aebd\" alt=\"Seeking Alpha\" title=\"Seeking Alpha\" tg-width=\"640\" tg-height=\"125\"/><span>Seeking Alpha</span></p><p>Let&#39;s delve into the numbers and the many positives from Alphabet&#39;s most recent quarterly earnings report.</p><h2 id=\"id_2525165374\">GOOG Q3: Many Things To Like</h2><p>Let&#39;s start with Alphabet&#39;s top line: 11% revenue growth was the best result over the last five quarters, as the company&#39;s growth rate was in the 1% to 7% range in the previous four quarters. With growth now in the double-digits once again, Alphabet has clearly experienced a major acceleration, and momentum is on the company&#39;s side. This compelling revenue growth was driven by strong results across different business units.</p><p>As noted above, Search saw its sales expand by more than 10%, which was a huge improvement over the recent trend -- in the previous four quarters, Search growth averaged just 1%. It looks like the advertising slowdown that had negatively impacted Alphabet and many of its peers in the recent past has ended, which could be due to the fact that the economy has remained resilient. A recession, which many investors and companies had worried about over the last year, has not materialized so far. While some businesses had scaled back their advertising spending in anticipation of a slowdown, which explains why Alphabet&#39;s Search revenue growth was weak over the last four quarters, things are now looking up again: with recession worries easing and Alphabet facing easier comparisons, Search revenue growth should remain strong over the coming quarters, I believe.</p><p>YouTube, which is a large cash cow for Alphabet, has seen compelling growth as well, with the ad market recovery due to a recession not happening playing a role in the better-than-expected performance as well.</p><p>It is also worth looking at the impact of the U.S. Dollar exchange rate versus other major currencies during the quarter. Alphabet had faced headwinds from a strengthening U.S. Dollar (DXY) in the recent past, which is why there was a big difference of 500 base points between Alphabet&#39;s reported revenue growth rate and its currency-neutral revenue growth rate one year ago. During this year&#39;s third quarter, both the reported and the currency-neutral revenue growth rate stood at 11%, thus currency rates have stopped being a headwind for the company -- which is good news, and which is an argument for GOOG growing its revenue at an attractive rate in the coming quarters as well, assuming the U.S. Dollar does not strengthen a lot from here.</p><p>When we look at the business growth performance, it is also worth taking a detailed look at the cloud business. It is true that Google Cloud&#39;s revenue growth decelerated from the previous quarter (28%) and also from the previous year&#39;s quarter (38%), coming in at 23% during Q3 of 2023. The market seemed to dislike that, but I don&#39;t think this is a major problem. And I also don&#39;t think this growth slowdown justifies a $100 billion market capitalization slump, which is what the 6% share price slump following the earnings release implies. Why do I believe that the Google Cloud result was far from bad despite growth being slower than during the previous quarter?</p><p>First, Google Cloud set a new record: Q3 of 2023 was its best quarter ever, with sales of $8.4 billion, versus a previous record of $8.0 billion.</p><p>Second, revenue growth of more than 20% remains highly compelling, thus growth definitely remained strong on an absolute basis.</p><p>Third, a decline in the unit&#39;s relative growth rate over time is perfectly normal. The law of large numbers dictates that it is not possible for a business to maintain a very high relative growth rate forever -- a declining growth rate, in relative terms, is a mathematical certainty. It thus shouldn&#39;t surprise investors too much to see this play out at Google Cloud as well.</p><p>Fourth, even if Alphabet had managed to keep the relative growth rate in line with the previous quarter, cloud revenues would have been higher by just $400 million or so. Would a $400 million revenue difference justify a $100 billion market capitalization difference? I do not believe that this makes a lot of sense, so the share price slump seems way overdone.</p><p>Getting back to the positive things from the report, Alphabet managed to further improve its cost position. During the pandemic, many tech companies over-hired and saw their salary costs explode, which caused some margin pressures over the last two years. But thanks to cost-cutting efforts, which include headcount reductions, Alphabet has turned the corner. The company&#39;s operating income margin soared by 300 base points to 28%. Combined with the aforementioned compelling revenue growth, this margin expansion allowed Alphabet to grow its operating income by a hefty 25% -- for a company that had earned a hefty $17 billion during the previous year&#39;s quarter, that&#39;s a very impressive profit growth rate, I believe.</p><p>Net income growth was even better, at 42% year over year, but it is important to note that this is at least partially due to a substantial improvement in the other income/expense line. It is unlikely that this will be a new trend, thus I believe that net income growth will be more in line with operating income growth in the future. But between double-digit revenue growth and margin tailwinds, this should be good enough for a quite attractive profit growth rate.</p><p>Finally, earnings per share will likely grow faster than operating and net profits, due to Alphabet&#39;s buybacks. At least that was the case during Q3, when a lower share count allowed the company to grow its earnings per share by 46% versus 42% for company-wide net income.</p><p>Alphabet has a fortress balance sheet with a massive cash position of $120 billion. Utilizing some of that cash, and some of Alphabet&#39;s hefty free cash flows, makes a lot of sense -- shares look far from expensive, and buying them back now could provide a lot of value in the long run. After all, Alphabet has generated $62 billion in free cash flows in 2023 so far -- capital expenditures of more than $20 billion are already accounted for. This implies full-year free cash flows in the $80 billion range, allowing Alphabet to spend massive amounts of cash on buybacks if it wants to.</p><h2 id=\"id_1629423720\">Alphabet: Attractive At The Current Price</h2><p>While a better growth rate for the cloud business would have been better, the most recent quarter was still very positive overall, I believe. Search growth accelerated, overall revenue growth was strong, margins are expanding quickly thanks to successful cost-cutting efforts, and operating profit growth in the 25% range is excellent for a large company such as Alphabet.</p><p>Add ongoing buybacks and a fortress balance sheet with $120 billion of cash, and Alphabet looks even better. At the after-hours share price of $132, the company is trading for just 22x forward earnings. Since 2024 starts in just over two months, we can also look at that year: The P/E ratio is just 19. I believe this makes for a very attractive investment opportunity and am looking forward to expanding my position in GOOG.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alphabet Stock Tumbles: This Is A Buying Opportunity?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlphabet Stock Tumbles: This Is A Buying Opportunity?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-10-25 11:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4643085-google-this-is-a-buying-opportunity><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Alphabet Inc. aka Google reported strong Q3 earnings, beating estimates and showing growth in ad revenue.Despite the positive results, Alphabet's shares dropped 6% in after-hours trading.The share ...</p>\n\n<a href=\"https://seekingalpha.com/article/4643085-google-this-is-a-buying-opportunity\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0642271901.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD-H","LU0456855351.SGD":"JPMorgan Funds - Global Equity A (acc) SGD","BK4514":"搜索引擎","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","IE00BJTD4V19.USD":"NEUBERGER BERMAN US LONG SHORT EQUITY \"A1\" (USD) ACC","LU2237443382.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA USD","LU0048573561.USD":"FIDELITY AMERICA \"A\" (USD) INC","LU2237443549.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA SGD-H","LU1803068979.SGD":"FTIF - Franklin Technology A (acc) SGD-H1","LU0056508442.USD":"贝莱德世界科技基金A2","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","LU2237443622.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc USD","LU0640476718.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQ \"AU\" (USD) ACC","LU0310800379.SGD":"FTIF - Templeton Global A Acc SGD","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","LU2237443978.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc SGD-H","BK4553":"喜马拉雅资本持仓","LU0109392836.USD":"富兰克林科技股A","BK4507":"流媒体概念","BK4585":"ETF&股票定投概念","BK4576":"AR","GOOG":"谷歌","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","LU0310800965.SGD":"FTIF - Templeton Global Balanced A Acc SGD","LU0211328371.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (MDIS) (USD)   INC","LU0786609619.USD":"高盛全球千禧一代股票组合Acc","BK4566":"资本集团","GOOGL":"谷歌A","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","LU0097036916.USD":"贝莱德美国增长A2 USD","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","LU2087621335.USD":"ALLSPRING GLOBAL FACTOR ENHANCED EQUITY \"A\" (USD) ACC","LU0320765059.SGD":"FTIF - Franklin US Opportunities A Acc SGD","BK4538":"云计算","BK4077":"互动媒体与服务","LU0861579265.USD":"联博低波幅策略股票基金A","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU0444971666.USD":"天利全球科技基金","BK4550":"红杉资本持仓","LU0149725797.USD":"汇丰美国股市经济规模基金","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","BK4561":"索罗斯持仓","LU0289941410.SGD":"AB FCP I Dynamic Diversified AX SGD","LU1316542783.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD","LU2265009873.SGD":"Eastspring Investments - Global Growth Equity AS SGD-H","LU0557290698.USD":"施罗德环球可持续增长基金","IE00B775SV38.USD":"NEUBERGER BERMAN US MULTICAP OPPORTUNITIES \"A\" (USD) ACC","LU0312595415.SGD":"Schroder ISF Global Climate Change Equity A Acc SGD","LU1839511570.USD":"WELLS FARGO GLOBAL FACTOR ENHANCED EQUITY \"I\" (USD) ACC"},"source_url":"https://seekingalpha.com/article/4643085-google-this-is-a-buying-opportunity","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2378455059","content_text":"Alphabet Inc. aka Google reported strong Q3 earnings, beating estimates and showing growth in ad revenue.Despite the positive results, Alphabet's shares dropped 6% in after-hours trading.The share price decline presents a buying opportunity, as Alphabet is attractively priced and has strong operational results.sjharmon/E+ via Getty ImagesArticle ThesisAlphabet Inc. (NASDAQ:GOOG, NASDAQ:GOOGL) aka Google reported its most recent quarterly results on Tuesday evening. The company beat estimates easily and reported great ad revenue growth, and yet shares slumped by 6% in after-hours trading. I believe that this does not make a lot of sense and that Alphabet is attractively priced right here.What Happened?Alphabet Inc. reported its third-quarter earnings results on Tuesday evening. The company's shares are down 6% in after-hours trading at the time of writing.What caused this share price slump? Did Alphabet miss revenue estimates? The answer is no -- Alphabet beat estimates easily, by almost $1 billion. Did Alphabet miss profit estimates? The answer is no: The company beat profit estimates by 7%. Did Alphabet experience a major margin decline compared to the previous year's quarter? Again, the answer is no: Alphabet's operating margin expanded by a nice 300 base points compared to one year earlier.So, if these numbers looked good, was there a problem in one of Alphabet's important growth units? Again, things looked good there: Google Search and YouTube grew by double-digits, and Google Cloud grew by well above 20% compared to the previous year's quarter.In short, there were many things to like, and GOOG beat analyst estimates very easily -- which is why the share price reaction is confusing and seems rather irrational to me. Of course, things such as a sell-the-news mindset or profit-taking could explain the market reaction, but I believe that the combination of strong operational results and a share price decline makes for a nice buying opportunity for investors interested in entering or expanding a position in Alphabet. Here's a screenshot from Seeking Alpha showing the headline numbers:Seeking AlphaLet's delve into the numbers and the many positives from Alphabet's most recent quarterly earnings report.GOOG Q3: Many Things To LikeLet's start with Alphabet's top line: 11% revenue growth was the best result over the last five quarters, as the company's growth rate was in the 1% to 7% range in the previous four quarters. With growth now in the double-digits once again, Alphabet has clearly experienced a major acceleration, and momentum is on the company's side. This compelling revenue growth was driven by strong results across different business units.As noted above, Search saw its sales expand by more than 10%, which was a huge improvement over the recent trend -- in the previous four quarters, Search growth averaged just 1%. It looks like the advertising slowdown that had negatively impacted Alphabet and many of its peers in the recent past has ended, which could be due to the fact that the economy has remained resilient. A recession, which many investors and companies had worried about over the last year, has not materialized so far. While some businesses had scaled back their advertising spending in anticipation of a slowdown, which explains why Alphabet's Search revenue growth was weak over the last four quarters, things are now looking up again: with recession worries easing and Alphabet facing easier comparisons, Search revenue growth should remain strong over the coming quarters, I believe.YouTube, which is a large cash cow for Alphabet, has seen compelling growth as well, with the ad market recovery due to a recession not happening playing a role in the better-than-expected performance as well.It is also worth looking at the impact of the U.S. Dollar exchange rate versus other major currencies during the quarter. Alphabet had faced headwinds from a strengthening U.S. Dollar (DXY) in the recent past, which is why there was a big difference of 500 base points between Alphabet's reported revenue growth rate and its currency-neutral revenue growth rate one year ago. During this year's third quarter, both the reported and the currency-neutral revenue growth rate stood at 11%, thus currency rates have stopped being a headwind for the company -- which is good news, and which is an argument for GOOG growing its revenue at an attractive rate in the coming quarters as well, assuming the U.S. Dollar does not strengthen a lot from here.When we look at the business growth performance, it is also worth taking a detailed look at the cloud business. It is true that Google Cloud's revenue growth decelerated from the previous quarter (28%) and also from the previous year's quarter (38%), coming in at 23% during Q3 of 2023. The market seemed to dislike that, but I don't think this is a major problem. And I also don't think this growth slowdown justifies a $100 billion market capitalization slump, which is what the 6% share price slump following the earnings release implies. Why do I believe that the Google Cloud result was far from bad despite growth being slower than during the previous quarter?First, Google Cloud set a new record: Q3 of 2023 was its best quarter ever, with sales of $8.4 billion, versus a previous record of $8.0 billion.Second, revenue growth of more than 20% remains highly compelling, thus growth definitely remained strong on an absolute basis.Third, a decline in the unit's relative growth rate over time is perfectly normal. The law of large numbers dictates that it is not possible for a business to maintain a very high relative growth rate forever -- a declining growth rate, in relative terms, is a mathematical certainty. It thus shouldn't surprise investors too much to see this play out at Google Cloud as well.Fourth, even if Alphabet had managed to keep the relative growth rate in line with the previous quarter, cloud revenues would have been higher by just $400 million or so. Would a $400 million revenue difference justify a $100 billion market capitalization difference? I do not believe that this makes a lot of sense, so the share price slump seems way overdone.Getting back to the positive things from the report, Alphabet managed to further improve its cost position. During the pandemic, many tech companies over-hired and saw their salary costs explode, which caused some margin pressures over the last two years. But thanks to cost-cutting efforts, which include headcount reductions, Alphabet has turned the corner. The company's operating income margin soared by 300 base points to 28%. Combined with the aforementioned compelling revenue growth, this margin expansion allowed Alphabet to grow its operating income by a hefty 25% -- for a company that had earned a hefty $17 billion during the previous year's quarter, that's a very impressive profit growth rate, I believe.Net income growth was even better, at 42% year over year, but it is important to note that this is at least partially due to a substantial improvement in the other income/expense line. It is unlikely that this will be a new trend, thus I believe that net income growth will be more in line with operating income growth in the future. But between double-digit revenue growth and margin tailwinds, this should be good enough for a quite attractive profit growth rate.Finally, earnings per share will likely grow faster than operating and net profits, due to Alphabet's buybacks. At least that was the case during Q3, when a lower share count allowed the company to grow its earnings per share by 46% versus 42% for company-wide net income.Alphabet has a fortress balance sheet with a massive cash position of $120 billion. Utilizing some of that cash, and some of Alphabet's hefty free cash flows, makes a lot of sense -- shares look far from expensive, and buying them back now could provide a lot of value in the long run. After all, Alphabet has generated $62 billion in free cash flows in 2023 so far -- capital expenditures of more than $20 billion are already accounted for. This implies full-year free cash flows in the $80 billion range, allowing Alphabet to spend massive amounts of cash on buybacks if it wants to.Alphabet: Attractive At The Current PriceWhile a better growth rate for the cloud business would have been better, the most recent quarter was still very positive overall, I believe. Search growth accelerated, overall revenue growth was strong, margins are expanding quickly thanks to successful cost-cutting efforts, and operating profit growth in the 25% range is excellent for a large company such as Alphabet.Add ongoing buybacks and a fortress balance sheet with $120 billion of cash, and Alphabet looks even better. At the after-hours share price of $132, the company is trading for just 22x forward earnings. Since 2024 starts in just over two months, we can also look at that year: The P/E ratio is just 19. I believe this makes for a very attractive investment opportunity and am looking forward to expanding my position in GOOG.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":106546074,"gmtCreate":1698309740130,"gmtModify":1698309747611,"authorId":4103449635847630,"author":{"id":4103449635847630,"idStr":"4103449635847630","authorId":4103449635847630,"name":"Chilli Padi","avatar":"https://community-static.tradeup.com/news/506e0f8972cf66e2ce193c479e4bcb64","vip":1,"currentWearingBadge":{"badgeId":"44212b71d0be4ec88898348dbe882e03-3","templateUuid":"44212b71d0be4ec88898348dbe882e03","name":"President Tiger","description":"The transaction amount of the securities account reaches $1,000,000","bigImgUrl":"https://static.tigerbbs.com/fbeac6bb240db7da8b972e5183d050ba","smallImgUrl":"https://static.tigerbbs.com/436cdf80292b99f0a992e78750ac4e3a","grayImgUrl":"https://static.tigerbbs.com/506a259a7b456f037592c3b23c779599","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.03.23","exceedPercentage":"93.89%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1101},"crmLevel":8,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":234289342198024,"type":1,"supId":234374156611632,"prevId":0,"content":"Dont despair. Whichever way Mr Market bring us, there is always opportunity to make money-only that you must tailor your strategy to a “down” market. Goodluck to u &amp; everyone too","text":"Dont despair. Whichever way Mr Market bring us, there is always opportunity to make money-only that you must tailor your strategy to a “down” market. Goodluck to u &amp; everyone too","html":"Dont despair. Whichever way Mr Market bring us, there is always opportunity to make money-only that you must tailor your strategy to a “down” market. Goodluck to u &amp; everyone too"},{"id":234374156611632,"gmtCreate":1698246455065,"gmtModify":1698246461802,"authorId":9000000000000351,"author":{"id":9000000000000351,"idStr":"9000000000000351","authorId":9000000000000351,"name":"WebbBart","avatar":"https://static.tigerbbs.com/f1a81761a2eae3f57678008e1b9012c2","vip":8,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":234289342198024,"type":1,"supId":0,"prevId":0,"content":"<p>The whole market is an crash for weeks. The recession is there. If google after good earnings goes down 8 per cent, we gonna see bad weeks. Good Luck we all gonna lose money</p>","text":"<p>The whole market is an crash for weeks. The recession is there. If google after good earnings goes down 8 per cent, we gonna see bad weeks. Good Luck we all gonna lose money</p>","html":"<p>The whole market is an crash for weeks. The recession is there. If google after good earnings goes down 8 per cent, we gonna see bad weeks. Good Luck we all gonna lose money</p>"}],"langContent":"EN"},{"id":234287190941704,"gmtCreate":1698207841119,"gmtModify":1698207845285,"author":{"id":"3581563418944392","authorId":"3581563418944392","name":"Andrewinho","avatar":"https://static.tigerbbs.com/3127e2bc40ab23064a5187a00a63e19b","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3581563418944392","authorIdStr":"3581563418944392"},"htmlText":"Yes, great business!! 🤭🤭🤭&nbsp;","listText":"Yes, great business!! 🤭🤭🤭&nbsp;","text":"Yes, great business!! 🤭🤭🤭","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/234287190941704","repostId":2378455059,"repostType":2,"repost":{"id":"2378455059","kind":"highlight","pubTimestamp":1698206100,"share":"https://ttm.financial/m/news/2378455059?lang=&edition=fundamental","pubTime":"2023-10-25 11:55","market":"us","language":"en","title":"Alphabet Stock Tumbles: This Is A Buying Opportunity?","url":"https://stock-news.laohu8.com/highlight/detail?id=2378455059","media":"Seeking Alpha","summary":"Alphabet Inc. aka Google reported strong Q3 earnings, beating estimates and showing growth in ad revenue.Despite the positive results, Alphabet's shares dropped 6% in after-hours trading.The share price decline presents a buying opportunity, as Alphabet is attractively priced and has strong operational results.   sjharmon/E+ via Getty Images Article Thesis Alphabet Inc.  aka Google reported its most recent quarterly results on Tuesday evening. The company beat estimates easily and reported great ad revenue growth, and yet shares slumped by 6% in after-hours trading. I believe that this does not make a lot of sense and that Alphabet is attractively priced right here. What Happened?Alphabet Inc. reported its third-quarter earnings results on Tuesday evening. The company's shares are down 6% in after-hours trading at the time of writing. What caused this share price slump?The answer is no -- Alphabet beat estimates easily, by almost $1 billion. Did Alphabet miss profit estimates?Again, th","content":"<html><head></head><body><ul style=\"\"><li><p>Alphabet Inc. aka Google reported strong Q3 earnings, beating estimates and showing growth in ad revenue.</p></li><li><p>Despite the positive results, Alphabet&#39;s shares dropped 6% in after-hours trading.</p></li><li><p>The share price decline presents a buying opportunity, as Alphabet is attractively priced and has strong operational results.</p></li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/33ffa6ba327188fbd4fdf3ed1d649768\" alt=\"sjharmon/E+ via Getty Images\" title=\"sjharmon/E+ via Getty Images\" tg-width=\"750\" tg-height=\"580\"/><span>sjharmon/E+ via Getty Images</span></p><h2 id=\"id_3391202723\">Article Thesis</h2><p><strong>Alphabet Inc.</strong> (NASDAQ:GOOG, NASDAQ:GOOGL) aka <strong>Google</strong> reported its most recent quarterly results on Tuesday evening. The company beat estimates easily and reported great ad revenue growth, and yet shares slumped by 6% in after-hours trading. I believe that this does not make a lot of sense and that Alphabet is attractively priced right here.</p><h2 id=\"id_3284661375\">What Happened?</h2><p>Alphabet Inc. reported its third-quarter earnings results on Tuesday evening. The company&#39;s shares are down 6% in after-hours trading at the time of writing.</p><p>What caused this share price slump? Did Alphabet miss revenue estimates? The answer is no -- Alphabet beat estimates easily, by almost $1 billion. Did Alphabet miss profit estimates? The answer is no: The company beat profit estimates by 7%. Did Alphabet experience a major margin decline compared to the previous year&#39;s quarter? Again, the answer is no: Alphabet&#39;s operating margin expanded by a nice 300 base points compared to one year earlier.</p><p>So, if these numbers looked good, was there a problem in one of Alphabet&#39;s important growth units? Again, things looked good there: Google Search and YouTube grew by double-digits, and Google Cloud grew by well above 20% compared to the previous year&#39;s quarter.</p><p>In short, there were many things to like, and GOOG beat analyst estimates very easily -- which is why the share price reaction is confusing and seems rather irrational to me. Of course, things such as a sell-the-news mindset or profit-taking could explain the market reaction, but I believe that the combination of strong operational results and a share price decline makes for a nice buying opportunity for investors interested in entering or expanding a position in Alphabet. Here&#39;s a screenshot from Seeking Alpha showing the headline numbers:</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/9e222e992b1fe1f16f160d943fd8aebd\" alt=\"Seeking Alpha\" title=\"Seeking Alpha\" tg-width=\"640\" tg-height=\"125\"/><span>Seeking Alpha</span></p><p>Let&#39;s delve into the numbers and the many positives from Alphabet&#39;s most recent quarterly earnings report.</p><h2 id=\"id_2525165374\">GOOG Q3: Many Things To Like</h2><p>Let&#39;s start with Alphabet&#39;s top line: 11% revenue growth was the best result over the last five quarters, as the company&#39;s growth rate was in the 1% to 7% range in the previous four quarters. With growth now in the double-digits once again, Alphabet has clearly experienced a major acceleration, and momentum is on the company&#39;s side. This compelling revenue growth was driven by strong results across different business units.</p><p>As noted above, Search saw its sales expand by more than 10%, which was a huge improvement over the recent trend -- in the previous four quarters, Search growth averaged just 1%. It looks like the advertising slowdown that had negatively impacted Alphabet and many of its peers in the recent past has ended, which could be due to the fact that the economy has remained resilient. A recession, which many investors and companies had worried about over the last year, has not materialized so far. While some businesses had scaled back their advertising spending in anticipation of a slowdown, which explains why Alphabet&#39;s Search revenue growth was weak over the last four quarters, things are now looking up again: with recession worries easing and Alphabet facing easier comparisons, Search revenue growth should remain strong over the coming quarters, I believe.</p><p>YouTube, which is a large cash cow for Alphabet, has seen compelling growth as well, with the ad market recovery due to a recession not happening playing a role in the better-than-expected performance as well.</p><p>It is also worth looking at the impact of the U.S. Dollar exchange rate versus other major currencies during the quarter. Alphabet had faced headwinds from a strengthening U.S. Dollar (DXY) in the recent past, which is why there was a big difference of 500 base points between Alphabet&#39;s reported revenue growth rate and its currency-neutral revenue growth rate one year ago. During this year&#39;s third quarter, both the reported and the currency-neutral revenue growth rate stood at 11%, thus currency rates have stopped being a headwind for the company -- which is good news, and which is an argument for GOOG growing its revenue at an attractive rate in the coming quarters as well, assuming the U.S. Dollar does not strengthen a lot from here.</p><p>When we look at the business growth performance, it is also worth taking a detailed look at the cloud business. It is true that Google Cloud&#39;s revenue growth decelerated from the previous quarter (28%) and also from the previous year&#39;s quarter (38%), coming in at 23% during Q3 of 2023. The market seemed to dislike that, but I don&#39;t think this is a major problem. And I also don&#39;t think this growth slowdown justifies a $100 billion market capitalization slump, which is what the 6% share price slump following the earnings release implies. Why do I believe that the Google Cloud result was far from bad despite growth being slower than during the previous quarter?</p><p>First, Google Cloud set a new record: Q3 of 2023 was its best quarter ever, with sales of $8.4 billion, versus a previous record of $8.0 billion.</p><p>Second, revenue growth of more than 20% remains highly compelling, thus growth definitely remained strong on an absolute basis.</p><p>Third, a decline in the unit&#39;s relative growth rate over time is perfectly normal. The law of large numbers dictates that it is not possible for a business to maintain a very high relative growth rate forever -- a declining growth rate, in relative terms, is a mathematical certainty. It thus shouldn&#39;t surprise investors too much to see this play out at Google Cloud as well.</p><p>Fourth, even if Alphabet had managed to keep the relative growth rate in line with the previous quarter, cloud revenues would have been higher by just $400 million or so. Would a $400 million revenue difference justify a $100 billion market capitalization difference? I do not believe that this makes a lot of sense, so the share price slump seems way overdone.</p><p>Getting back to the positive things from the report, Alphabet managed to further improve its cost position. During the pandemic, many tech companies over-hired and saw their salary costs explode, which caused some margin pressures over the last two years. But thanks to cost-cutting efforts, which include headcount reductions, Alphabet has turned the corner. The company&#39;s operating income margin soared by 300 base points to 28%. Combined with the aforementioned compelling revenue growth, this margin expansion allowed Alphabet to grow its operating income by a hefty 25% -- for a company that had earned a hefty $17 billion during the previous year&#39;s quarter, that&#39;s a very impressive profit growth rate, I believe.</p><p>Net income growth was even better, at 42% year over year, but it is important to note that this is at least partially due to a substantial improvement in the other income/expense line. It is unlikely that this will be a new trend, thus I believe that net income growth will be more in line with operating income growth in the future. But between double-digit revenue growth and margin tailwinds, this should be good enough for a quite attractive profit growth rate.</p><p>Finally, earnings per share will likely grow faster than operating and net profits, due to Alphabet&#39;s buybacks. At least that was the case during Q3, when a lower share count allowed the company to grow its earnings per share by 46% versus 42% for company-wide net income.</p><p>Alphabet has a fortress balance sheet with a massive cash position of $120 billion. Utilizing some of that cash, and some of Alphabet&#39;s hefty free cash flows, makes a lot of sense -- shares look far from expensive, and buying them back now could provide a lot of value in the long run. After all, Alphabet has generated $62 billion in free cash flows in 2023 so far -- capital expenditures of more than $20 billion are already accounted for. This implies full-year free cash flows in the $80 billion range, allowing Alphabet to spend massive amounts of cash on buybacks if it wants to.</p><h2 id=\"id_1629423720\">Alphabet: Attractive At The Current Price</h2><p>While a better growth rate for the cloud business would have been better, the most recent quarter was still very positive overall, I believe. Search growth accelerated, overall revenue growth was strong, margins are expanding quickly thanks to successful cost-cutting efforts, and operating profit growth in the 25% range is excellent for a large company such as Alphabet.</p><p>Add ongoing buybacks and a fortress balance sheet with $120 billion of cash, and Alphabet looks even better. At the after-hours share price of $132, the company is trading for just 22x forward earnings. Since 2024 starts in just over two months, we can also look at that year: The P/E ratio is just 19. I believe this makes for a very attractive investment opportunity and am looking forward to expanding my position in GOOG.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alphabet Stock Tumbles: This Is A Buying Opportunity?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlphabet Stock Tumbles: This Is A Buying Opportunity?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-10-25 11:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4643085-google-this-is-a-buying-opportunity><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Alphabet Inc. aka Google reported strong Q3 earnings, beating estimates and showing growth in ad revenue.Despite the positive results, Alphabet's shares dropped 6% in after-hours trading.The share ...</p>\n\n<a href=\"https://seekingalpha.com/article/4643085-google-this-is-a-buying-opportunity\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0642271901.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD-H","LU0456855351.SGD":"JPMorgan Funds - Global Equity A (acc) SGD","BK4514":"搜索引擎","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","IE00BJTD4V19.USD":"NEUBERGER BERMAN US LONG SHORT EQUITY \"A1\" (USD) ACC","LU2237443382.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA USD","LU0048573561.USD":"FIDELITY AMERICA \"A\" (USD) INC","LU2237443549.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA SGD-H","LU1803068979.SGD":"FTIF - Franklin Technology A (acc) SGD-H1","LU0056508442.USD":"贝莱德世界科技基金A2","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","LU2237443622.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc USD","LU0640476718.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQ \"AU\" (USD) ACC","LU0310800379.SGD":"FTIF - Templeton Global A Acc SGD","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","LU2237443978.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc SGD-H","BK4553":"喜马拉雅资本持仓","LU0109392836.USD":"富兰克林科技股A","BK4507":"流媒体概念","BK4585":"ETF&股票定投概念","BK4576":"AR","GOOG":"谷歌","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","LU0310800965.SGD":"FTIF - Templeton Global Balanced A Acc SGD","LU0211328371.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (MDIS) (USD)   INC","LU0786609619.USD":"高盛全球千禧一代股票组合Acc","BK4566":"资本集团","GOOGL":"谷歌A","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","LU0097036916.USD":"贝莱德美国增长A2 USD","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","LU2087621335.USD":"ALLSPRING GLOBAL FACTOR ENHANCED EQUITY \"A\" (USD) ACC","LU0320765059.SGD":"FTIF - Franklin US Opportunities A Acc SGD","BK4538":"云计算","BK4077":"互动媒体与服务","LU0861579265.USD":"联博低波幅策略股票基金A","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU0444971666.USD":"天利全球科技基金","BK4550":"红杉资本持仓","LU0149725797.USD":"汇丰美国股市经济规模基金","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","BK4561":"索罗斯持仓","LU0289941410.SGD":"AB FCP I Dynamic Diversified AX SGD","LU1316542783.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD","LU2265009873.SGD":"Eastspring Investments - Global Growth Equity AS SGD-H","LU0557290698.USD":"施罗德环球可持续增长基金","IE00B775SV38.USD":"NEUBERGER BERMAN US MULTICAP OPPORTUNITIES \"A\" (USD) ACC","LU0312595415.SGD":"Schroder ISF Global Climate Change Equity A Acc SGD","LU1839511570.USD":"WELLS FARGO GLOBAL FACTOR ENHANCED EQUITY \"I\" (USD) ACC"},"source_url":"https://seekingalpha.com/article/4643085-google-this-is-a-buying-opportunity","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2378455059","content_text":"Alphabet Inc. aka Google reported strong Q3 earnings, beating estimates and showing growth in ad revenue.Despite the positive results, Alphabet's shares dropped 6% in after-hours trading.The share price decline presents a buying opportunity, as Alphabet is attractively priced and has strong operational results.sjharmon/E+ via Getty ImagesArticle ThesisAlphabet Inc. (NASDAQ:GOOG, NASDAQ:GOOGL) aka Google reported its most recent quarterly results on Tuesday evening. The company beat estimates easily and reported great ad revenue growth, and yet shares slumped by 6% in after-hours trading. I believe that this does not make a lot of sense and that Alphabet is attractively priced right here.What Happened?Alphabet Inc. reported its third-quarter earnings results on Tuesday evening. The company's shares are down 6% in after-hours trading at the time of writing.What caused this share price slump? Did Alphabet miss revenue estimates? The answer is no -- Alphabet beat estimates easily, by almost $1 billion. Did Alphabet miss profit estimates? The answer is no: The company beat profit estimates by 7%. Did Alphabet experience a major margin decline compared to the previous year's quarter? Again, the answer is no: Alphabet's operating margin expanded by a nice 300 base points compared to one year earlier.So, if these numbers looked good, was there a problem in one of Alphabet's important growth units? Again, things looked good there: Google Search and YouTube grew by double-digits, and Google Cloud grew by well above 20% compared to the previous year's quarter.In short, there were many things to like, and GOOG beat analyst estimates very easily -- which is why the share price reaction is confusing and seems rather irrational to me. Of course, things such as a sell-the-news mindset or profit-taking could explain the market reaction, but I believe that the combination of strong operational results and a share price decline makes for a nice buying opportunity for investors interested in entering or expanding a position in Alphabet. Here's a screenshot from Seeking Alpha showing the headline numbers:Seeking AlphaLet's delve into the numbers and the many positives from Alphabet's most recent quarterly earnings report.GOOG Q3: Many Things To LikeLet's start with Alphabet's top line: 11% revenue growth was the best result over the last five quarters, as the company's growth rate was in the 1% to 7% range in the previous four quarters. With growth now in the double-digits once again, Alphabet has clearly experienced a major acceleration, and momentum is on the company's side. This compelling revenue growth was driven by strong results across different business units.As noted above, Search saw its sales expand by more than 10%, which was a huge improvement over the recent trend -- in the previous four quarters, Search growth averaged just 1%. It looks like the advertising slowdown that had negatively impacted Alphabet and many of its peers in the recent past has ended, which could be due to the fact that the economy has remained resilient. A recession, which many investors and companies had worried about over the last year, has not materialized so far. While some businesses had scaled back their advertising spending in anticipation of a slowdown, which explains why Alphabet's Search revenue growth was weak over the last four quarters, things are now looking up again: with recession worries easing and Alphabet facing easier comparisons, Search revenue growth should remain strong over the coming quarters, I believe.YouTube, which is a large cash cow for Alphabet, has seen compelling growth as well, with the ad market recovery due to a recession not happening playing a role in the better-than-expected performance as well.It is also worth looking at the impact of the U.S. Dollar exchange rate versus other major currencies during the quarter. Alphabet had faced headwinds from a strengthening U.S. Dollar (DXY) in the recent past, which is why there was a big difference of 500 base points between Alphabet's reported revenue growth rate and its currency-neutral revenue growth rate one year ago. During this year's third quarter, both the reported and the currency-neutral revenue growth rate stood at 11%, thus currency rates have stopped being a headwind for the company -- which is good news, and which is an argument for GOOG growing its revenue at an attractive rate in the coming quarters as well, assuming the U.S. Dollar does not strengthen a lot from here.When we look at the business growth performance, it is also worth taking a detailed look at the cloud business. It is true that Google Cloud's revenue growth decelerated from the previous quarter (28%) and also from the previous year's quarter (38%), coming in at 23% during Q3 of 2023. The market seemed to dislike that, but I don't think this is a major problem. And I also don't think this growth slowdown justifies a $100 billion market capitalization slump, which is what the 6% share price slump following the earnings release implies. Why do I believe that the Google Cloud result was far from bad despite growth being slower than during the previous quarter?First, Google Cloud set a new record: Q3 of 2023 was its best quarter ever, with sales of $8.4 billion, versus a previous record of $8.0 billion.Second, revenue growth of more than 20% remains highly compelling, thus growth definitely remained strong on an absolute basis.Third, a decline in the unit's relative growth rate over time is perfectly normal. The law of large numbers dictates that it is not possible for a business to maintain a very high relative growth rate forever -- a declining growth rate, in relative terms, is a mathematical certainty. It thus shouldn't surprise investors too much to see this play out at Google Cloud as well.Fourth, even if Alphabet had managed to keep the relative growth rate in line with the previous quarter, cloud revenues would have been higher by just $400 million or so. Would a $400 million revenue difference justify a $100 billion market capitalization difference? I do not believe that this makes a lot of sense, so the share price slump seems way overdone.Getting back to the positive things from the report, Alphabet managed to further improve its cost position. During the pandemic, many tech companies over-hired and saw their salary costs explode, which caused some margin pressures over the last two years. But thanks to cost-cutting efforts, which include headcount reductions, Alphabet has turned the corner. The company's operating income margin soared by 300 base points to 28%. Combined with the aforementioned compelling revenue growth, this margin expansion allowed Alphabet to grow its operating income by a hefty 25% -- for a company that had earned a hefty $17 billion during the previous year's quarter, that's a very impressive profit growth rate, I believe.Net income growth was even better, at 42% year over year, but it is important to note that this is at least partially due to a substantial improvement in the other income/expense line. It is unlikely that this will be a new trend, thus I believe that net income growth will be more in line with operating income growth in the future. But between double-digit revenue growth and margin tailwinds, this should be good enough for a quite attractive profit growth rate.Finally, earnings per share will likely grow faster than operating and net profits, due to Alphabet's buybacks. At least that was the case during Q3, when a lower share count allowed the company to grow its earnings per share by 46% versus 42% for company-wide net income.Alphabet has a fortress balance sheet with a massive cash position of $120 billion. Utilizing some of that cash, and some of Alphabet's hefty free cash flows, makes a lot of sense -- shares look far from expensive, and buying them back now could provide a lot of value in the long run. After all, Alphabet has generated $62 billion in free cash flows in 2023 so far -- capital expenditures of more than $20 billion are already accounted for. This implies full-year free cash flows in the $80 billion range, allowing Alphabet to spend massive amounts of cash on buybacks if it wants to.Alphabet: Attractive At The Current PriceWhile a better growth rate for the cloud business would have been better, the most recent quarter was still very positive overall, I believe. Search growth accelerated, overall revenue growth was strong, margins are expanding quickly thanks to successful cost-cutting efforts, and operating profit growth in the 25% range is excellent for a large company such as Alphabet.Add ongoing buybacks and a fortress balance sheet with $120 billion of cash, and Alphabet looks even better. At the after-hours share price of $132, the company is trading for just 22x forward earnings. Since 2024 starts in just over two months, we can also look at that year: The P/E ratio is just 19. I believe this makes for a very attractive investment opportunity and am looking forward to expanding my position in GOOG.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":234286736105480,"gmtCreate":1698207730075,"gmtModify":1698207734586,"author":{"id":"4111448269923362","authorId":"4111448269923362","name":"TigerHulk","avatar":"https://community-static.tradeup.com/news/9e1491ac4fc7b7459eacd64c6be410ae","vip":2,"hat":"https://static.tigerbbs.com/ae1f49570794979e009a5efdeb6f4789","crmLevel":7,"crmLevelSwitch":1,"idStr":"4111448269923362","authorIdStr":"4111448269923362"},"htmlText":"Load more while the rest are offloading. This offer great opportunities to transfer the wealth from the impatience to the patience.&nbsp;","listText":"Load more while the rest are offloading. This offer great opportunities to transfer the wealth from the impatience to the patience.&nbsp;","text":"Load more while the rest are offloading. This offer great opportunities to transfer the wealth from the impatience to the patience.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/234286736105480","repostId":2378455059,"repostType":2,"repost":{"id":"2378455059","kind":"highlight","pubTimestamp":1698206100,"share":"https://ttm.financial/m/news/2378455059?lang=&edition=fundamental","pubTime":"2023-10-25 11:55","market":"us","language":"en","title":"Alphabet Stock Tumbles: This Is A Buying Opportunity?","url":"https://stock-news.laohu8.com/highlight/detail?id=2378455059","media":"Seeking Alpha","summary":"Alphabet Inc. aka Google reported strong Q3 earnings, beating estimates and showing growth in ad revenue.Despite the positive results, Alphabet's shares dropped 6% in after-hours trading.The share price decline presents a buying opportunity, as Alphabet is attractively priced and has strong operational results.   sjharmon/E+ via Getty Images Article Thesis Alphabet Inc.  aka Google reported its most recent quarterly results on Tuesday evening. The company beat estimates easily and reported great ad revenue growth, and yet shares slumped by 6% in after-hours trading. I believe that this does not make a lot of sense and that Alphabet is attractively priced right here. What Happened?Alphabet Inc. reported its third-quarter earnings results on Tuesday evening. The company's shares are down 6% in after-hours trading at the time of writing. What caused this share price slump?The answer is no -- Alphabet beat estimates easily, by almost $1 billion. Did Alphabet miss profit estimates?Again, th","content":"<html><head></head><body><ul style=\"\"><li><p>Alphabet Inc. aka Google reported strong Q3 earnings, beating estimates and showing growth in ad revenue.</p></li><li><p>Despite the positive results, Alphabet&#39;s shares dropped 6% in after-hours trading.</p></li><li><p>The share price decline presents a buying opportunity, as Alphabet is attractively priced and has strong operational results.</p></li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/33ffa6ba327188fbd4fdf3ed1d649768\" alt=\"sjharmon/E+ via Getty Images\" title=\"sjharmon/E+ via Getty Images\" tg-width=\"750\" tg-height=\"580\"/><span>sjharmon/E+ via Getty Images</span></p><h2 id=\"id_3391202723\">Article Thesis</h2><p><strong>Alphabet Inc.</strong> (NASDAQ:GOOG, NASDAQ:GOOGL) aka <strong>Google</strong> reported its most recent quarterly results on Tuesday evening. The company beat estimates easily and reported great ad revenue growth, and yet shares slumped by 6% in after-hours trading. I believe that this does not make a lot of sense and that Alphabet is attractively priced right here.</p><h2 id=\"id_3284661375\">What Happened?</h2><p>Alphabet Inc. reported its third-quarter earnings results on Tuesday evening. The company&#39;s shares are down 6% in after-hours trading at the time of writing.</p><p>What caused this share price slump? Did Alphabet miss revenue estimates? The answer is no -- Alphabet beat estimates easily, by almost $1 billion. Did Alphabet miss profit estimates? The answer is no: The company beat profit estimates by 7%. Did Alphabet experience a major margin decline compared to the previous year&#39;s quarter? Again, the answer is no: Alphabet&#39;s operating margin expanded by a nice 300 base points compared to one year earlier.</p><p>So, if these numbers looked good, was there a problem in one of Alphabet&#39;s important growth units? Again, things looked good there: Google Search and YouTube grew by double-digits, and Google Cloud grew by well above 20% compared to the previous year&#39;s quarter.</p><p>In short, there were many things to like, and GOOG beat analyst estimates very easily -- which is why the share price reaction is confusing and seems rather irrational to me. Of course, things such as a sell-the-news mindset or profit-taking could explain the market reaction, but I believe that the combination of strong operational results and a share price decline makes for a nice buying opportunity for investors interested in entering or expanding a position in Alphabet. Here&#39;s a screenshot from Seeking Alpha showing the headline numbers:</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/9e222e992b1fe1f16f160d943fd8aebd\" alt=\"Seeking Alpha\" title=\"Seeking Alpha\" tg-width=\"640\" tg-height=\"125\"/><span>Seeking Alpha</span></p><p>Let&#39;s delve into the numbers and the many positives from Alphabet&#39;s most recent quarterly earnings report.</p><h2 id=\"id_2525165374\">GOOG Q3: Many Things To Like</h2><p>Let&#39;s start with Alphabet&#39;s top line: 11% revenue growth was the best result over the last five quarters, as the company&#39;s growth rate was in the 1% to 7% range in the previous four quarters. With growth now in the double-digits once again, Alphabet has clearly experienced a major acceleration, and momentum is on the company&#39;s side. This compelling revenue growth was driven by strong results across different business units.</p><p>As noted above, Search saw its sales expand by more than 10%, which was a huge improvement over the recent trend -- in the previous four quarters, Search growth averaged just 1%. It looks like the advertising slowdown that had negatively impacted Alphabet and many of its peers in the recent past has ended, which could be due to the fact that the economy has remained resilient. A recession, which many investors and companies had worried about over the last year, has not materialized so far. While some businesses had scaled back their advertising spending in anticipation of a slowdown, which explains why Alphabet&#39;s Search revenue growth was weak over the last four quarters, things are now looking up again: with recession worries easing and Alphabet facing easier comparisons, Search revenue growth should remain strong over the coming quarters, I believe.</p><p>YouTube, which is a large cash cow for Alphabet, has seen compelling growth as well, with the ad market recovery due to a recession not happening playing a role in the better-than-expected performance as well.</p><p>It is also worth looking at the impact of the U.S. Dollar exchange rate versus other major currencies during the quarter. Alphabet had faced headwinds from a strengthening U.S. Dollar (DXY) in the recent past, which is why there was a big difference of 500 base points between Alphabet&#39;s reported revenue growth rate and its currency-neutral revenue growth rate one year ago. During this year&#39;s third quarter, both the reported and the currency-neutral revenue growth rate stood at 11%, thus currency rates have stopped being a headwind for the company -- which is good news, and which is an argument for GOOG growing its revenue at an attractive rate in the coming quarters as well, assuming the U.S. Dollar does not strengthen a lot from here.</p><p>When we look at the business growth performance, it is also worth taking a detailed look at the cloud business. It is true that Google Cloud&#39;s revenue growth decelerated from the previous quarter (28%) and also from the previous year&#39;s quarter (38%), coming in at 23% during Q3 of 2023. The market seemed to dislike that, but I don&#39;t think this is a major problem. And I also don&#39;t think this growth slowdown justifies a $100 billion market capitalization slump, which is what the 6% share price slump following the earnings release implies. Why do I believe that the Google Cloud result was far from bad despite growth being slower than during the previous quarter?</p><p>First, Google Cloud set a new record: Q3 of 2023 was its best quarter ever, with sales of $8.4 billion, versus a previous record of $8.0 billion.</p><p>Second, revenue growth of more than 20% remains highly compelling, thus growth definitely remained strong on an absolute basis.</p><p>Third, a decline in the unit&#39;s relative growth rate over time is perfectly normal. The law of large numbers dictates that it is not possible for a business to maintain a very high relative growth rate forever -- a declining growth rate, in relative terms, is a mathematical certainty. It thus shouldn&#39;t surprise investors too much to see this play out at Google Cloud as well.</p><p>Fourth, even if Alphabet had managed to keep the relative growth rate in line with the previous quarter, cloud revenues would have been higher by just $400 million or so. Would a $400 million revenue difference justify a $100 billion market capitalization difference? I do not believe that this makes a lot of sense, so the share price slump seems way overdone.</p><p>Getting back to the positive things from the report, Alphabet managed to further improve its cost position. During the pandemic, many tech companies over-hired and saw their salary costs explode, which caused some margin pressures over the last two years. But thanks to cost-cutting efforts, which include headcount reductions, Alphabet has turned the corner. The company&#39;s operating income margin soared by 300 base points to 28%. Combined with the aforementioned compelling revenue growth, this margin expansion allowed Alphabet to grow its operating income by a hefty 25% -- for a company that had earned a hefty $17 billion during the previous year&#39;s quarter, that&#39;s a very impressive profit growth rate, I believe.</p><p>Net income growth was even better, at 42% year over year, but it is important to note that this is at least partially due to a substantial improvement in the other income/expense line. It is unlikely that this will be a new trend, thus I believe that net income growth will be more in line with operating income growth in the future. But between double-digit revenue growth and margin tailwinds, this should be good enough for a quite attractive profit growth rate.</p><p>Finally, earnings per share will likely grow faster than operating and net profits, due to Alphabet&#39;s buybacks. At least that was the case during Q3, when a lower share count allowed the company to grow its earnings per share by 46% versus 42% for company-wide net income.</p><p>Alphabet has a fortress balance sheet with a massive cash position of $120 billion. Utilizing some of that cash, and some of Alphabet&#39;s hefty free cash flows, makes a lot of sense -- shares look far from expensive, and buying them back now could provide a lot of value in the long run. After all, Alphabet has generated $62 billion in free cash flows in 2023 so far -- capital expenditures of more than $20 billion are already accounted for. This implies full-year free cash flows in the $80 billion range, allowing Alphabet to spend massive amounts of cash on buybacks if it wants to.</p><h2 id=\"id_1629423720\">Alphabet: Attractive At The Current Price</h2><p>While a better growth rate for the cloud business would have been better, the most recent quarter was still very positive overall, I believe. Search growth accelerated, overall revenue growth was strong, margins are expanding quickly thanks to successful cost-cutting efforts, and operating profit growth in the 25% range is excellent for a large company such as Alphabet.</p><p>Add ongoing buybacks and a fortress balance sheet with $120 billion of cash, and Alphabet looks even better. At the after-hours share price of $132, the company is trading for just 22x forward earnings. Since 2024 starts in just over two months, we can also look at that year: The P/E ratio is just 19. I believe this makes for a very attractive investment opportunity and am looking forward to expanding my position in GOOG.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alphabet Stock Tumbles: This Is A Buying Opportunity?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlphabet Stock Tumbles: This Is A Buying Opportunity?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-10-25 11:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4643085-google-this-is-a-buying-opportunity><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Alphabet Inc. aka Google reported strong Q3 earnings, beating estimates and showing growth in ad revenue.Despite the positive results, Alphabet's shares dropped 6% in after-hours trading.The share ...</p>\n\n<a href=\"https://seekingalpha.com/article/4643085-google-this-is-a-buying-opportunity\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0642271901.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD-H","LU0456855351.SGD":"JPMorgan Funds - Global Equity A (acc) SGD","BK4514":"搜索引擎","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","IE00BJTD4V19.USD":"NEUBERGER BERMAN US LONG SHORT EQUITY \"A1\" (USD) ACC","LU2237443382.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA USD","LU0048573561.USD":"FIDELITY AMERICA \"A\" (USD) INC","LU2237443549.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA SGD-H","LU1803068979.SGD":"FTIF - Franklin Technology A (acc) SGD-H1","LU0056508442.USD":"贝莱德世界科技基金A2","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","LU2237443622.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc USD","LU0640476718.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQ \"AU\" (USD) ACC","LU0310800379.SGD":"FTIF - Templeton Global A Acc SGD","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","LU2237443978.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc SGD-H","BK4553":"喜马拉雅资本持仓","LU0109392836.USD":"富兰克林科技股A","BK4507":"流媒体概念","BK4585":"ETF&股票定投概念","BK4576":"AR","GOOG":"谷歌","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","LU0310800965.SGD":"FTIF - Templeton Global Balanced A Acc SGD","LU0211328371.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (MDIS) (USD)   INC","LU0786609619.USD":"高盛全球千禧一代股票组合Acc","BK4566":"资本集团","GOOGL":"谷歌A","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","LU0097036916.USD":"贝莱德美国增长A2 USD","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","LU2087621335.USD":"ALLSPRING GLOBAL FACTOR ENHANCED EQUITY \"A\" (USD) ACC","LU0320765059.SGD":"FTIF - Franklin US Opportunities A Acc SGD","BK4538":"云计算","BK4077":"互动媒体与服务","LU0861579265.USD":"联博低波幅策略股票基金A","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU0444971666.USD":"天利全球科技基金","BK4550":"红杉资本持仓","LU0149725797.USD":"汇丰美国股市经济规模基金","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","BK4561":"索罗斯持仓","LU0289941410.SGD":"AB FCP I Dynamic Diversified AX SGD","LU1316542783.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD","LU2265009873.SGD":"Eastspring Investments - Global Growth Equity AS SGD-H","LU0557290698.USD":"施罗德环球可持续增长基金","IE00B775SV38.USD":"NEUBERGER BERMAN US MULTICAP OPPORTUNITIES \"A\" (USD) ACC","LU0312595415.SGD":"Schroder ISF Global Climate Change Equity A Acc SGD","LU1839511570.USD":"WELLS FARGO GLOBAL FACTOR ENHANCED EQUITY \"I\" (USD) ACC"},"source_url":"https://seekingalpha.com/article/4643085-google-this-is-a-buying-opportunity","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2378455059","content_text":"Alphabet Inc. aka Google reported strong Q3 earnings, beating estimates and showing growth in ad revenue.Despite the positive results, Alphabet's shares dropped 6% in after-hours trading.The share price decline presents a buying opportunity, as Alphabet is attractively priced and has strong operational results.sjharmon/E+ via Getty ImagesArticle ThesisAlphabet Inc. (NASDAQ:GOOG, NASDAQ:GOOGL) aka Google reported its most recent quarterly results on Tuesday evening. The company beat estimates easily and reported great ad revenue growth, and yet shares slumped by 6% in after-hours trading. I believe that this does not make a lot of sense and that Alphabet is attractively priced right here.What Happened?Alphabet Inc. reported its third-quarter earnings results on Tuesday evening. The company's shares are down 6% in after-hours trading at the time of writing.What caused this share price slump? Did Alphabet miss revenue estimates? The answer is no -- Alphabet beat estimates easily, by almost $1 billion. Did Alphabet miss profit estimates? The answer is no: The company beat profit estimates by 7%. Did Alphabet experience a major margin decline compared to the previous year's quarter? Again, the answer is no: Alphabet's operating margin expanded by a nice 300 base points compared to one year earlier.So, if these numbers looked good, was there a problem in one of Alphabet's important growth units? Again, things looked good there: Google Search and YouTube grew by double-digits, and Google Cloud grew by well above 20% compared to the previous year's quarter.In short, there were many things to like, and GOOG beat analyst estimates very easily -- which is why the share price reaction is confusing and seems rather irrational to me. Of course, things such as a sell-the-news mindset or profit-taking could explain the market reaction, but I believe that the combination of strong operational results and a share price decline makes for a nice buying opportunity for investors interested in entering or expanding a position in Alphabet. Here's a screenshot from Seeking Alpha showing the headline numbers:Seeking AlphaLet's delve into the numbers and the many positives from Alphabet's most recent quarterly earnings report.GOOG Q3: Many Things To LikeLet's start with Alphabet's top line: 11% revenue growth was the best result over the last five quarters, as the company's growth rate was in the 1% to 7% range in the previous four quarters. With growth now in the double-digits once again, Alphabet has clearly experienced a major acceleration, and momentum is on the company's side. This compelling revenue growth was driven by strong results across different business units.As noted above, Search saw its sales expand by more than 10%, which was a huge improvement over the recent trend -- in the previous four quarters, Search growth averaged just 1%. It looks like the advertising slowdown that had negatively impacted Alphabet and many of its peers in the recent past has ended, which could be due to the fact that the economy has remained resilient. A recession, which many investors and companies had worried about over the last year, has not materialized so far. While some businesses had scaled back their advertising spending in anticipation of a slowdown, which explains why Alphabet's Search revenue growth was weak over the last four quarters, things are now looking up again: with recession worries easing and Alphabet facing easier comparisons, Search revenue growth should remain strong over the coming quarters, I believe.YouTube, which is a large cash cow for Alphabet, has seen compelling growth as well, with the ad market recovery due to a recession not happening playing a role in the better-than-expected performance as well.It is also worth looking at the impact of the U.S. Dollar exchange rate versus other major currencies during the quarter. Alphabet had faced headwinds from a strengthening U.S. Dollar (DXY) in the recent past, which is why there was a big difference of 500 base points between Alphabet's reported revenue growth rate and its currency-neutral revenue growth rate one year ago. During this year's third quarter, both the reported and the currency-neutral revenue growth rate stood at 11%, thus currency rates have stopped being a headwind for the company -- which is good news, and which is an argument for GOOG growing its revenue at an attractive rate in the coming quarters as well, assuming the U.S. Dollar does not strengthen a lot from here.When we look at the business growth performance, it is also worth taking a detailed look at the cloud business. It is true that Google Cloud's revenue growth decelerated from the previous quarter (28%) and also from the previous year's quarter (38%), coming in at 23% during Q3 of 2023. The market seemed to dislike that, but I don't think this is a major problem. And I also don't think this growth slowdown justifies a $100 billion market capitalization slump, which is what the 6% share price slump following the earnings release implies. Why do I believe that the Google Cloud result was far from bad despite growth being slower than during the previous quarter?First, Google Cloud set a new record: Q3 of 2023 was its best quarter ever, with sales of $8.4 billion, versus a previous record of $8.0 billion.Second, revenue growth of more than 20% remains highly compelling, thus growth definitely remained strong on an absolute basis.Third, a decline in the unit's relative growth rate over time is perfectly normal. The law of large numbers dictates that it is not possible for a business to maintain a very high relative growth rate forever -- a declining growth rate, in relative terms, is a mathematical certainty. It thus shouldn't surprise investors too much to see this play out at Google Cloud as well.Fourth, even if Alphabet had managed to keep the relative growth rate in line with the previous quarter, cloud revenues would have been higher by just $400 million or so. Would a $400 million revenue difference justify a $100 billion market capitalization difference? I do not believe that this makes a lot of sense, so the share price slump seems way overdone.Getting back to the positive things from the report, Alphabet managed to further improve its cost position. During the pandemic, many tech companies over-hired and saw their salary costs explode, which caused some margin pressures over the last two years. But thanks to cost-cutting efforts, which include headcount reductions, Alphabet has turned the corner. The company's operating income margin soared by 300 base points to 28%. Combined with the aforementioned compelling revenue growth, this margin expansion allowed Alphabet to grow its operating income by a hefty 25% -- for a company that had earned a hefty $17 billion during the previous year's quarter, that's a very impressive profit growth rate, I believe.Net income growth was even better, at 42% year over year, but it is important to note that this is at least partially due to a substantial improvement in the other income/expense line. It is unlikely that this will be a new trend, thus I believe that net income growth will be more in line with operating income growth in the future. But between double-digit revenue growth and margin tailwinds, this should be good enough for a quite attractive profit growth rate.Finally, earnings per share will likely grow faster than operating and net profits, due to Alphabet's buybacks. At least that was the case during Q3, when a lower share count allowed the company to grow its earnings per share by 46% versus 42% for company-wide net income.Alphabet has a fortress balance sheet with a massive cash position of $120 billion. Utilizing some of that cash, and some of Alphabet's hefty free cash flows, makes a lot of sense -- shares look far from expensive, and buying them back now could provide a lot of value in the long run. After all, Alphabet has generated $62 billion in free cash flows in 2023 so far -- capital expenditures of more than $20 billion are already accounted for. This implies full-year free cash flows in the $80 billion range, allowing Alphabet to spend massive amounts of cash on buybacks if it wants to.Alphabet: Attractive At The Current PriceWhile a better growth rate for the cloud business would have been better, the most recent quarter was still very positive overall, I believe. Search growth accelerated, overall revenue growth was strong, margins are expanding quickly thanks to successful cost-cutting efforts, and operating profit growth in the 25% range is excellent for a large company such as Alphabet.Add ongoing buybacks and a fortress balance sheet with $120 billion of cash, and Alphabet looks even better. At the after-hours share price of $132, the company is trading for just 22x forward earnings. Since 2024 starts in just over two months, we can also look at that year: The P/E ratio is just 19. I believe this makes for a very attractive investment opportunity and am looking forward to expanding my position in GOOG.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":25,"commentSize":3,"repostSize":2,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false}}