Insights

Why Alphabet stock popped on earnings

Consumers are active, advertisers are spending, and Google is reaping the profit.
The post Why Alphabet stock popped on earnings appeared first on The Motley Fool Australia. –

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) are rising today, up by 3.1% as of 1:30 p.m. EDT, after the internet search giant reported Q2 2021 results last night.

Alphabet crushed earnings estimates. Instead of the $19.21 per share in profit on $56 billion in revenue that Wall Street had forecast, Alphabet earned $27.26 per share on sales of $61.9 billion.

So what

“In Q2, there was a rising tide of online activity in many parts of the world,” commented CEO Sundar Pichai, allowing Alphabet to cash in on “elevated consumer online activity and broad-based strength in advertiser spend.”

Sales climbed 61.6% year over year in the quarter, operating profit margin on those sales nearly doubled to 31%, and Alphabet’s earnings of $27.26 per share grew 169% over last year’s bottom-line haul. Literally every Alphabet division gained strength in Q2, with Google Cloud (sales up 53%), Search (up 68%), and YouTube ads (up 84%) being particular standouts.

(Notably, however, Google Cloud remains a money-losing business for Alphabet, with operating losses of $591 million.)

Now what

Wall Street was just about unanimous in its approval of Alphabet’s quarter. At last count, TheFly.com had recorded no fewer than 17 separate analysts raising their price targets on the stock, with Susquehanna going as high as high as $3,600 a share.

If they’re right about that, then even after today’s gains, Alphabet stock still has another 32% profit left in it for new investors.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Alphabet stock popped on earnings appeared first on The Motley Fool Australia.

Should you invest $1,000 in Alphabet right now?

Before you consider Alphabet, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Alphabet wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Google (NASDAQ:GOOG) share price climbs on blockbuster earnings

Now’s the time to buy up mega-cap tech shares

ASX investors were buying Tesla and Apple shares last week

This is how Alphabet (still) makes most of its money

Amazon’s biggest threat in e-commerce

Rich Smith has no position in any of the stocks mentioned. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alphabet (A shares) and Alphabet (C shares). The Motley Fool Australia has recommended Alphabet (A shares) and Alphabet (C shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!