GOOGLE stock: up 8%

GOOGLE stock: up 8%

2020-04-30 • Actualizada

Better than expected

Alphabet presented its Q1’2020 results on Tuesday, and they proved to be not that bad. In fact, they were not bad at all, especially given the virus damage circumstances. Below are some of them.

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Source: Alphabet Investor Relations

So an increase in revenues 13% in the first quarter of 2020 stands against 17% in the same for 2019 year over year. Bad, but not that bad. Could have been much worse – and that’s exactly what the market was expecting. So Google did better than the forecast even falling below the normal expansion trajectory. But the strong part comes next.

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Source: Alphabet Investor Relations

Google Cloud and YouTube ads did really well. These are the core engine for Google’s performance, and these did not fail. Expansion in Cloud and YouTube service was the main reasons why investors were fairly pleased with the results. Consequently, the stock price surged.

Stock price

Before the webcast, the share price was at $1,232, coming to test April’s lows. Observers were not expecting much from the results – that’s why that made so much contrast to the positive performance of the company. Upon the release, the stock jumped to $1,332 making a 8% leap. So is it a buy now?

GOOGLEH1.png

Go for it

Even the presenters of the results including Sundar Pichai himself hinted that the second quarter of 2020 will be much tougher and gave other signs that there is no 100% certainty about sustainability of the numbers they brought. However, the fundamentals still say that Google is a good bet – primarily because the advertising revenue doesn’t seem to be damaged that much by the virus. And as long as it stay the core source of the income for the company, there should be no strategic obstacle for Google to keep growing.

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