The Nasdaq (QQQ) index will enjoy new record highs after Alphabet (GOOG) posted quarterly results. Investors put aside the ominous risks associated with the DOJ lawsuit. In after-hours trade, GOOG stock gained nearly 6%.
Alphabet reported a 14.9% Y/Y growth in revenue, to $88.27 billion. Google Cloud grew at the fastest pace, rising by 35% to $11.4 billion. Google Services revenue increased by 13% to $76.5 billion. The company benefited from healthy demand for Google Search, Google Subscriptions, platforms, devices, and YouTube advertisements.
The strong performance of Google Cloud suggests that the market needs to recognize its dominance in the self-driving market. Waymo is a better, more comprehensive solution in the ride-hailing market. Tesla (TSLA), despite claims that it will have a Cyber cab ready soon, is at risk of falling behind.
Value investors should hold GOOG stock for the long term while trading TSLA stock.
According to the report, operating margin expansion is Alphabet’s key metric. It increased by 4.5% to 32%. The firm is running more efficiently now. After cutting 12,000 jobs in 2023, the leaner firm freed up its resources to invest in growth markets.
AI a Catalyst
Google’s careful launch of Gemini, its AI, on Google search and as a core product will pay off. CEO Sundar Pichai said that in Search, Google’s new AI features are expanding what people can search for and how they search for it.
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