Let's talk about Google again
Some might say - the company that came back from the dead?
But we told you
Don't call it Google - call it a monster
On April 11, Google stock looked like the tail end of the market... when the entire market had already started to rise, Google showed a negative return of 25%...
Analysts wrote it off, claiming the era of internet search was over, saying Google lagged behind Sam Altman in AI developments, and the stock simply refused to rise...
But here at SpyStocks - we simply disagreed with the thesis - we published an in-depth review of Google's capabilities and progress, explaining the unacceptable undervaluation..
And we left you to think about it...
This week, Google published one of the strongest quarterly reports in its history, with almost all figures exceeding Wall Street's estimates, and revenues exceeding $100 billion in a single quarter for the first time ever.
The stock reacted with gains - and is now actually up close to 100% from its April low.
We summarized the report's highlights for you - read and enjoy
Particularly strong financial performance. Earnings per share (EPS): $2.87 (estimate: $2.26) — a 35% increase year-over-year. Total revenue: $102.35 billion (estimate: $99.85) — a 16% increase. Revenue ex-TAC: $87.47 billion (estimate: $85.11).
Segmentation by areas. Google advertising: $74.18 billion (estimate: $72.46) — a 13% increase. Search and other areas: $56.57 billion — a 15% increase. YouTube advertising: $10.26 billion — a 15% increase. Subscriptions, platforms, and devices: $12.87 billion — a 21% increase. Cloud: $15.16 billion (estimate: $14.75) — a massive 34% increase. Other: $344 million — an 11% decrease.
Operational performance. Total operating income: $31.23 billion — a 9.5% increase. Operating margin: 31% (slight decrease due to a $3.5 billion European fine). Google Cloud operating income: $3.59 billion — an 85% jump. Capital expenditures (CapEx): $23.95 billion — an 83% surge year-over-year.
Growth engine: Google Cloud. Pichai emphasized that Google's cloud services continue to accelerate — with a record backlog of $155 billion. Demand for AI services contributes to unprecedented growth.
AI at the center. Gemini processes 7 billion tokens per minute. The Gemini app already has 650 million monthly active users (MAU). Pichai noted that “the comprehensive approach to AI creates tremendous momentum across all areas of the company”.
Outlook for the coming year
Capital expenditures are expected to reach $91–93 billion (above the previous estimate of ~$85 billion).
Expect continued double-digit growth in Google Cloud and advertising revenues, alongside the expansion of Gemini's applications.
Record profits - ceiling-breaking revenues and Cloud growing by 34% — all these position the company as an AI giant alongside Nvidia and Microsoft.