Alphabet Announces First Quarter 2019 Results

https://abc.xyz/investor/static/pdf/2019Q1_alphabet_earnings_release.pdf?cache=8ac2b86

by kgwgk • 7 years ago

84 40 7 years ago

abc.xyz

asaph• 7 years ago

Looks like Wall Street is considering this one a miss. $GOOG is down 6% in after hours trading.

azhenley2• 7 years ago

And still falling. -7% now.

gniv• 7 years ago

After going up by the same amount in the last two weeks.

I've seen this pattern in previous quarters: irrational increase in the days before earning, then a fall back to the same price. Not sure what's happening, could be option/day traders.

zrail• 7 years ago

This has been a thing on the stock market for a very long time and is not Google-specific. Basically every ticket is going to see action prior and subsequent to earnings reports.

bduerst• 7 years ago

The entire market is up the last two weeks. It's not irrational if you view it in context to the rest of the market activity.

duality• 7 years ago

Is this "buy the rumor, sell the news" in action?

DeonPenny5• 7 years ago

More of a sell the new situation

azhenley2• 7 years ago

For those that are more apt at understanding these reports, could you provide us a summary?

reallydude• 7 years ago

Yahoo has a fine TL;DR - https://finance.yahoo.com/news/alphabet-google-first-quarter...

writepub• 7 years ago

For a summary, try Reuters: https://www.reuters.com/article/us-alphabet-results/alphabet...

Eventually, It'll be hard to not argue that some part of revenue and profit misses arise from activism against serving the US government, or opening a China search engine.

At that point, will Google choose to pursue business interests or pander to activists?

jcfrei• 7 years ago

My handwaving analysis would be that advertising around search is slowing and instead mostly growing around content - this is because the web has matured and users are now educated on what it has to offer. They spend less time searching and browsing the web and instead spend most of the time consuming content (via streaming services and social feeds) through established platforms (youtube, instagram, netflix, spotify, twitch, etc.). And Alphabet's main content platform youtube is somewhat harder to monetize.

tyingq• 7 years ago

"advertising around search is slowing"

I think it's just finally tied directly to growth of internet use. Their YoY gains used to exceed it because they were grabbing more above the fold space every year, experimenting with different ad looks, etc.

I believe the well of new tricks is drying up... everything above the fold is an ad now for high value queries.

That's not a bad place to be.. it's just not as comparatively nice as consistently doing better than general growth.

I suppose one caveat is that they make less on mobile ads versus desktop, and desktop share continues to shrink.

robertAngst• 7 years ago

I don't think I've ever used google so much. The search feature in particular.

Even navigating my own website is faster with a google search than to click on 3 links.

danielcampos932• 7 years ago

acquition cost.

xiphias23• 7 years ago

For me in the past few years Waymo was the most interesting growth part of Alphabet, but after the Tesla presentation I feel that Tesla is in a better position because of the amount of edge cases they can gather for their models.

notfromhere• 7 years ago

Tesla FSD is vaporware that exists just to pump the stock.

DeonPenny5• 7 years ago

Waymo is more likely vaporware. Traditional ML isn't going to work for all the edge case. Tesla has thousands of cars on the road. The Tesla Deep learning play is the only way this is going to work

Traster• 7 years ago

Sorry but I don't believe that gathering data is going to be an effective advantage for Tesla over Google. It's an advantage over the bloke off the street and his autonomous driving start up. Google has proven time and again they will brute force problems. Google wanted to have pictures of every single road in America for Google maps. So they did. If that data is useful Google will get it - and they'll be doing it on a standardised platform that collects all the information they need. Meanwhile Tesla has a fleet of cars most of which don't have the most recent sensor suite, and even their most recent sensor suite may well not be enough - at which point they'll need to convince another 100,000 people to buy a new Tesla to get the sensors.

telltruth• 7 years ago

TLDR; Revenue increased by 19% which didn't met the growth expectations because same quarter last year revenue growth was 26%. If you don't take fines in to account margin is improved and paid clicks are increased by 39% but the cost per click went down to 19% yoy which seems to be the big factor in missed expectation for the growth. GOOG headcount went up from 85K to 103K yoy.

GOOG is getting beaten right now with analysts because Amazon and FB are being perceived to have done much better with their ad business. People on TV are asking to reduce costs, investments like Waymo and monetize properties like maps. They seem to have lost faith in further growth in Google's ad business due to increasing competition from FB and Amazon.

e12e• 7 years ago

I must say, nearly 20% quarterly revenue increase sounds pretty amazing for such a large company (I guess not every quarter is equal - but 20% increase every quarter means a doubling of revenue year to year). Is this typical for all the big tech players?

Is it really not crazy - is the market(s) still expanding that much?

myroon5• 7 years ago

Earnings reports are quarterly, but the growth rates mentioned are annual growth rates

danielcampos932• 7 years ago

To many, investing is not about the now but the future. Looking at googles curves revenue growth is slowing and costs are growing. Numbers look great right now but meh in the future.

MarkMc2• 7 years ago

It's not doubling every year. Revenue is up 17% compared to Q1 2018

JabavuAdams• 7 years ago

Is anyone else amazed that they added almost 20k employees since last year? How?

zachberger• 7 years ago

As stated on past earnings calls, the growth has been driven by Google Cloud in both technical and sales roles.

https://www.forbes.com/sites/jilliandonfro/2019/02/04/google...

outside1234• 7 years ago

Look at all of those employees!! What are 100k employees doing at Google? Especially since they have a fairly weak field team.

MarkMc2• 7 years ago

Putting aside the EC fine, operating expenses grew 19.2% year-on-year while revenue only grew 16.7% year-on-year. This is clearly not sustainable - if it continues expect to see some belt-tightening at Google.

Alphabet Announces First Quarter 2019 Results

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