Alphabet-A Stock FY2023 Q4 Third-party Analysts' Forecast & Preview

Google parent Alphabet's stock (GOOGL) has had a mixed performance so far in 2023. Despite strong gains in 2021, GOOGL shares dropped 39% in 2022 amid a broader tech stock sell-off. So far this year, the stock is up 47%, outperforming the 27% gain in the Nasdaq composite.

However, GOOGL has pulled back recently along with the overall market. Google faces a number of challenges going forward, including an antitrust trial brought by the Justice Department alleging Google maintains an illegal monopoly in search. The trial started in September 2022 and a ruling may not come until 2024.

GOOGL beat earnings expectations for the second quarter of 2022, snapping a four-quarter string of profit declines. But competition is increasing in AI and search from companies like Microsoft, presenting a potential threat to Google's dominance.

Source: Is Google Stock A Buy Amid Justice Department Antitrust Case? (www.investors.com) >>

Part 2：GOOGL Alphabet-A FY2023 Q3 Earnings Report Recap

1. GOOGL Alphabet-A Key Indicators and Historical Earnings Report

• - GOOGL Alphabet-A FY2023 Q3 EPS was $1.55, YOY +46.23%
• - GOOGL Alphabet-A PE Ratio today is 28.92 
• - GOOGL Alphabet-A FY2023 Q3 Revenue was $76.7B, YOY +11.00% 
• - GOOGL Alphabet-A FY2023 Q3 FCF was $22.6B, YOY +40.58%
• - GOOGL Alphabet-A FY2023 Q3 Current Ratio was 2.04, YOY -18.85% 
• - GOOGL Alphabet-A FY2023 Q3 ROA was 5.05%, YOY +29.51%
• - GOOGL Alphabet-A FY2023 Q3 ROE was 7.29%, YOY +33.35%
• - GOOGL Alphabet-A FY2023 Q3 Gross Margin was 56.67%, YOY +3.22% 
• - GOOGL Alphabet-A FY2023 Q3 Net Margin was 25.67%, YOY +27.52%

For more information, such as definitions and explanations of the above technical terms, please view:

Interpretation of Key Indicators >>

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2. GOOGL Alphabet-A FY2023 Q3 Financial Statement Analysis

• Alphabet reported Q2 2023 revenues of $74.6 billion, up 9% year-over-year in constant currency. Revenues were driven by growth in Google Services, up 9% to $66.3 billion. Strength in Search and YouTube advertising in large part led to growth in Google advertising revenues of 9% year-over-year. Google Cloud revenues grew 28% year-over-year to $8 billion.

   

  Operating income was $21.8 billion, up 12% versus last year. Operating margin increased to 29%, up from 28% a year ago. Net income rose 15% to $18.4 billion. EPS grew 18% to $1.44.

• In Q2, Alphabet saw growth in revenues and profitability despite macroeconomic challenges. The company benefited from changes in useful lives of servers and network equipment, which reduced depreciation expense by $966 million in the quarter. Excluding this, operating income was up 7%.

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• Geographically, revenues grew 7% in the US, 10% in EMEA, 14% in APAC and 11% in Other Americas, in constant currency. The US remains Alphabet's largest market at 47% of revenues. International revenues accounted for 53% of the total.

• During the quarter, Alphabet spent $6.9 billion on capex, largely on infrastructure and data centers. Free cash flow was $21.8 billion. The company ended the quarter with $118.3 billion in cash and marketable securities.

   

  Overall, Alphabet delivered strong top and bottom line growth in Q2. The company continues to benefit from strength in Search and YouTube advertising. Growth in Google Cloud indicates traction in enterprise. Alphabet’s financial position remains robust, with rising profitability and cash flows.

Source: Alphabet Announces Second Quarter 2023 Results (abc.xy) >>

3.  GOOGL Alphabet-A FY2023 Q3 Business Highlights

Google Search & Other:

Revenues were $42.6 billion, up 5% year-over-year. This indicated a continued strength in search advertising.

YouTube Ads:

Revenues were $7.7 billion, up 4% year-over-year. Indicated continued momentum in YouTube advertising.

Google Network:

Revenues were $7.9 billion, down 5% versus last year.

Google Advertising:

Total advertising revenues were $58.1 billion, up 4% year-over-year. Growth was driven by Search and YouTube.

Google Services:

Total revenues were $66.3 billion, up 9%. Fueled by advertising growth.

Google Cloud:

Revenues rose 28% to $8 billion. Highlights potential traction with enterprise customers.

Other Bets:

Revenues were $285 million, up 48% year-over-year.

Source: Alphabet Announces Second Quarter 2023 Results (abc.xy) >>

Part 3：GOOGL Alphabet-A FY2023 Q4 Earnings Report Forecast & Preview

1. GOOGL Alphabet-A FY2023 Q4 Forecast By Independent, Third Party Analyst Rating, December 4th

Following an extensive evaluation of Google's financial data, revenue, and stock trends over the last few quarters by more than 32 third-party financial analysts, Alphabet-A Stock has been given a "Strong Buy" rating. Analysts forecast an average stock price of $153.630 for the next 12 months.

- Third Party Analyst rating: Strong Buy

- Target Price: $153.630

- Forecast of FY2023 Q4 EPS: $1.601

- Forecast of FY2023 Q4 Revenue: $85.1B

- Forecast of FY2023 Q4 EBIT: $23.7B

Source: https://www.benzinga.com/quote/goog/analyst-ratings

For more information on what the analyst ratings may mean, visit  https://pro.benzinga.com/blog/what-do-stock-analyst-ratings-mean

Benzinga is not affiliated with Moomoo Technologies Inc., Moomoo Financial Inc., or its affiliates.

2. GOOGL Alphabet-A Forecast By Technical Analysis, December 4th, 2023

For more information, such as definitions and explanations of the above technical terms, please view: 

Interpretation of technical indicators >>

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