Alphabet’s stock (Google) (NASDAQ
The global tech giant posted weak results in the second quarter of 2022, with profits and revenue missing street estimates. It reported total revenue of $69.68 billion, up 13% year-on-year, driven by a 12% increase in Google
The company’s revenue grew 41% year-on-year to $257.6 billion in fiscal 2021. It was primarily driven by a 43% growth in Google advertising revenue, followed by of a 47% increase in Google’s cloud business. However, the growth rate slowed in the first two quarters of 2022. Markedly, six-month revenue improved 17% year-on-year to $137.7 billion. In total, net income for the first six months of 2022 decreased 11% year-on-year to $32.4 billion due to an unfavorable decline in other income (expenses).
To advance Google revenue is expected to reach $287.7 billion in fiscal 2022. In addition, its net profit margin is expected to decline from 29.5% to around 24% during the year, resulting in a net profit of $69.3 billion. This, coupled with an annual EPS of $5.28 and a P/E multiple of 28x, will lead to a valuation of $148.
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