I Bought More Google Stock | Google Earning Review

Google released their first quarter earnings for 2022, stocks are down by 3.5% but is it an overreaction?

Hi how’s it going everyone so google which is also known as alphabet which is the name of their parent company released their first quarters earning report of 2022 and one of the major takeaways is that google missed on both their earnings and revenues according to analysts any simplified earnings results the earnings per share is 24.62 which is lower than the

25.91 expected their revenue is 68.01 billion which is lower than the 68.11 billion uh that’s expected they had a major decline in the youtube advertising revenue which is 6.87 billion versus the 7.51 billion expected now one on bright side is that their youtube cloud revenue is up from 5.8 5.82 billion versus the 5.76 billion expected as a result of that

The google stock is down by around 3.5 percent overnight and overall their stock is down from a high of almost three thousand dollars per share uh at the start of 2022 to around 2 300. so for a total loss of around 20 percent so some may see this as a decline in the company and i personally think this is a great opportunity to buy some google stocks and here’s

Why now first of all google’s revenue came in at 68.0 billion now this is a growth of 23 from the same quarter of last year now let’s get this straight they have a revenue of 68 billion dollars so google is literally still a money printing machine how many trillion dollar companies still enjoy a revenue growth of 23 so 23 revenue growth is pretty amazing even

For a small fast growing company let alone a trillion dollar company i mean sure that’s less than the uh 34 percent growth from the first quarter of 2021 when everything was just slowly opening up but then again 20 growth is nothing to be laughed at the youtube ad revenue is less than expected which makes sense due to all the competing social media platforms now

Especially tick tock which is starting to capture more and more of the social media market and then you add instagram stories to the mix and then you end up with all these platforms competing for advertisers and the consumer’s attention now one segment that’s gaining more attraction is youtube shorts now shorts is pretty much a direct competitor uh to tiktok and

Instagram reels the ceo of google says that shorts have around 30 billion daily views which is around four times the number of short views from the year before now short form media is definitely the future and how successful these youtube shorts become would heavily influence the direction of where youtube is going the google’s cloud revenue saw a 44 growth over

Last year now even though it has a slower pace of growth compared to last quarter where they enjoyed this very significant growth google cloud includes apps like gmail like google docs google sheets google photos google drive calendar meet notes and many other apps that people are very familiar with so as of the fourth quarter of 2021 google cloud has an estimated

Nine percent of the total cloud market behind microsoft azure and amazon aws which was the uh industry leader now one other very important news is that their board of directors authorize a 70 billion dollar stock buyback scheme now stock buyback can sometimes be quite a controversial topic so there are two main ways a company can pay back their shareholder and

One is through dividends and the other is through company stock buyback when a company pays out dividends the shareholders will get taxed on those dividends but they can receive the payouts more straight away on the other hand if a company chooses to buy back their own stock it inflates the stock price of the company for the shareholders but this doesn’t get

Taxed straight away so as a shareholder you can almost passively enjoy the increase in stock price without having to do anything so over the past few years google has spent more than a hundred billion dollars on their stock buybacks personally i will be looking to purchase more google stocks since they still have such a strong balance sheet and are essentially

Still a cash printing machine now their growth may be slightly lower but they’re still extremely profitable company if we look at the charts for google they are up around around 100 in the two years since we hit the pandemic low back in around march april of 2020 even after the most recent price drop now personally i use google products every single day they’re

A very innovative company that constantly bring out new products that makes everything easier and i do plan on holding onto their stock for the long term they’re also one of the leaders in ai development which only would become more and more important in the near future all the way back in february they have announced a 24 1 stock split for the google stock which

Means that at their current share price of around two thousand uh three hundred dollars uh with a 22 one stock split it will make their share price to just above a hundred dollars now they are planning on doing these stocks split a little bit later on in the year around july and this may serve to get a lot of new investors that could potentially be buying google

Stocks because currently their share price is reasonably expensive at more than two thousand dollars but at a 100 price point it may encourage a lot of newer investors to pick up some google stocks maybe later in the year if you’re interested in investing in international stocks in companies such as google or amazon or other big companies check out my other videos

On which platform that you can use for investing and i’ll see you next time

Transcribed from video
I Bought More Google Stock | Google Earning Review By Henk Hustle Investing