To The Moon

🌟🌟🌟I am really happy today when Google  $Alphabet(GOOGL)$  reported a sterling set of Q3 24 Earnings that was stronger than expected.   Its shares rose 5.7% in after hours trading .

Google's Earnings per share was USD 2.12 versus USD 1.85 expected by LSEG.  Revenue was USD 88.27 billion versus USD 86.30 billion expected. YouTube advertising revenue was USD 8.92 billion versus USD 8.89 billion expected.  Google Cloud revenue was USD 11.35 billion versus USD 10.88 billion expected. 

Consolidated Google revenues in Q3 24 increased 15% year over year to USD 88.3 billion reflecting strong momentum across its business.

Google Services increased 13% to USD 76.5 billion, led by strength across Google Search and other Google subscriptions, platforms, devices and YouTube Ads.

Google Cloud revenues increased 35% to USD 11.4 billion led by accelerated growth on Google Cloud Platform across AI infrastructure, Generative AI Solutions and core Google Cloud products.

Total operating income increased 34% and operating margin percent expanded by 4.5% to 32%.  Net Income increased 34% and Earnings Per Share increased by 37% to USD 2.12.

Sundar Pichai, CEO of Google said that the momentum across the company is extraordinary.  Google's commitment to innovation as well as long term focus and investment in AI, are paying off with consumers and partners benefiting from Google's AI tools.

Google's new AI features are expanding what people can search for and how they search for it.  In Google Cloud, Google's AI solutions are helping drive deeper product adoption with existing customers, attract new customers and win large deals.  YouTube's total ads and subscription revenues surpassed USD 50 billion over the past 4 quarters for the first time.

Google's search business generated USD 49.4 billion in revenue, up 12.3% from previous year quarter.  Google's search business remains the largest contributor to revenue growth for the company. 

Other Bets, which includes Google's life sciences unit Verily and self driving unit Waymo, reported revenue of USD 388 million in Q3 24, up from USD 297 million a year ago. 

Google generated strong revenue growth in the quarter and its ongoing efforts to improve efficiency helped deliver improved margins. 

Google has announced that it will be paying dividends totalling USD 2.5 billion for the 3 months ended September 30 2024.  A cash dividend of 20 cents per share will be paid on December 16 2024.  It goes ex dividend on December 9 for each of Class A, Class B and Class C shares. 

In April 2024 , Google announced its first ever dividend and a USD 70 billion stock buy back, cheering investors who sent the stock surging nearly 16% after the bell.  I am happy that Google is continuing to pay dividends this quarter. 

Wall Street Analysts are bullish on Google with a Buy rating, Target price ranging from USD 220 to USD 170.00.  

I have invested in Google in 2022.  In that time, Google had dipped below USD 100 per share but I held on as I have great conviction that Google will not only survive but thrive.

I believe that Google has the lowest valuation among the Magnificent 7 stocks, with a Price to Earnings ratio of just 23.92 as at October 29 2024.  Despite its Antitrust hurdles, Google is still a great buy and undervalued compared to the other 7 Magnificent stocks. 

I am currently up 54% on my Google stock and thrilled that my strategy of buying and holding quality stocks like Google is paying off.  Google is something I use every day.  Google processes approximately 99,000 search queries every second, resulting in about 8.5 Billion searches daily and roughly 2 Trillion global searches annually.  That is the power of Google and that is why Google is my favourite Big Tech Stock. 

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