{"id":524146,"date":"2022-08-26T04:03:51","date_gmt":"2022-08-26T08:03:51","guid":{"rendered":"https:\/\/financhill.com\/blog\/?p=524146"},"modified":"2022-08-14T07:14:31","modified_gmt":"2022-08-14T11:14:31","slug":"the-bull-case-for-alphabet","status":"publish","type":"post","link":"https:\/\/financhill.com\/blog\/investing\/the-bull-case-for-alphabet","title":{"rendered":"The Bull Case For Alphabet"},"content":{"rendered":"

The Bull Case For Alphabet:<\/em> It\u2019s been a good year so far for Google\u2019s parent company, Alphabet – at least looking at the financial statements.<\/span><\/p>\n

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Despite a challenging economic environment, the Mountain View-based tech conglomerate has seen its financial results remain relatively stable of late.<\/div>\n
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The company enjoyed a record-breaking First Quarter<\/a> earlier in 2022, posting its highest ever quarterly sales total of $75.3 billion.<\/div>\n
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On top of that, the firm also announced it had managed to grow its revenues by 13% in the most recent quarter too, reporting a top line of $69.7 billion during the period<\/a>, with net income for the Second Quarter coming in at a solid $16.0 billion.<\/div>\n
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And while it’s pleasing that GOOGL\u2019s delivering such great news on the earnings front, there\u2019s still so much more for investors to get excited about when it comes to the business\u2019s long-term prospects.<\/div>\n
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Here, we\u2019ll outline 3 factors that make the bull case for buying GOOGL shares today.<\/div>\n
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Source: Unsplash<\/em><\/div>\n
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Google Cloud: The Most Important Catalyst?<\/h2>\n
While Alphabet\u2019s cloud division is rapidly expanding its revenue footprint just now, the segment is also fast becoming one of Google’s strongest business moats as well.<\/div>\n
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Indeed, Google\u2019s investment in its cloud services has helped position it as a leading player in what is a highly competitive market. The company flooded cash into its many data centers, improving its availability zones to make it one of the industry’s most robust and available cloud architectures<\/a> right now.<\/div>\n
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Moreover, Google\u2019s superior technological capability makes it an easy choice for consumers looking for cutting-edge performance. Its real-time analytics make use of powerful AI and machine learning capabilities<\/a>, and its open-source cybersecurity software<\/a>, slated for release later in 2022, promises a comprehensive solution for organizations without the resources or expertise to implement such a sophisticated program.<\/div>\n
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Being able to attract businesses in this way is a crucial advantage for Alphabet. The company is actually way behind Microsoft and Amazon when it comes to taking its share of the cloud market, accounting for only 8% of worldwide spending versus its rival\u2019s respective 21% and 33%.<\/div>\n
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Although the segment isn\u2019t profitable yet, this can easily be explained by the rate at which the operation is scaling, with the lack of bottom line income compensated by its huge revenue haul.<\/div>\n<\/div>\n