Alphabet is the parent company of Google and several other subsidiaries. It was created after a corporate restructuring of Google on 2015.... Show more
Segments: Google; Other Bets
Rating: Buy
Symbol: GOOG
Exchange: NASDAQ
Sector: Technology
Industry: Online Media

Alphabet sub-organizations

Alphabet Financial Health

Profitability:8.5/10

โœ… Alphabet has better Profitability than 84.62% of the companies on the Online Media industry

Net Margin: 20.8%

โœ… Alphabet has better Net Margin than 80% of the companies on the Online Media industry


ROE (Return on Equity): 6.82%

โœ… Alphabet has better ROE (Return on Equity) than 84.62% of the companies on the Online Media industry


ROA (Return on Assets): 3.17%

โœ… Alphabet has better ROA (Return on Assets) than 80% of the companies on the Online Media industry


Operating Efficiency:7.73/10

โœ… Alphabet has better Operating Efficiency than 80% of the companies on the Online Media industry

Operating Margin: 20.29%

โœ… Alphabet has better Operating Margin than 80% of the companies on the Online Media industry


Liquidity:9.06/10

โœ… Alphabet has better Liquidity than 53.85% of the companies on the Online Media industry

Quick Ratio: 3.39

โœ… Alphabet has better Quick Ratio than 53.85% of the companies on the Online Media industry


Operating Cash Flow Ratio: 1.18

โœ… Alphabet has better Operating Cash Flow Ratio than 60% of the companies on the Online Media industry


Solvency:9.43/10

โœ… Alphabet has better Solvency than 91.67% of the companies on the Online Media industry

Debt to Equity Ratio: 0.07

โœ… Alphabet has better Debt to Equity Ratio than 70% of the companies on the Online Media industry


Interest Coverage Ratio: 1.18

โœ… Alphabet has better Interest Coverage Ratio than 60% of the companies on the Online Media industry


Alphabet investments

Potential growth areas

๐Ÿš™ Self-driving and ridesharing
  • Waymo is considered the leader in the self-driving industry

  • Waymo's driverless cars had already driven more than 10 million miles on public roads and 7 billions on virtual environments

  • Waymo is testing a self-driving taxi service and self-driving trucks in Arizona

  • Alphabet owns an estimated 5% of Uber and 5% of Lyft

๐Ÿค– Artificial intelligence
  • DeepMind is using AI to solve some of the world's hardest problems like understanding protein folding and identifying eye diseases

  • Google Pixel phones use AI in order to improve its camera, battery and user experience

  • Google is investing heavily on AI across the entire company in order to improve their products and internal processes

โ˜ Cloud computing
  • Google Cloud is the 3rd biggest cloud service provider and Google itโ€™s investing heavily to catch up with AWS and Azure

  • Google has an edge on AI thanks to its TPU chip. This chip has been designed specifically for running Googleโ€™s TensorFlow framework and can be many times faster than conventional chips

๐ŸŽฎ Cloud gaming
  • Google's Stadia is a new cloud-based gaming platform that allows to play games across screens instantly

  • Stadia has a free-to-play version with lower resolution and a subscription plan for $10 a month which will provide: 4K resolution, a selection of free games and exclusive discounts

Alphabet's financial overview

  • Revenues of $41.2 billion and revenue growth of 13% year over year, constant currency revenue growth of 15% year over year.

  • Google segment revenues of $41.0 billion with revenue growth of 14% year over year and Other Bets revenues of $135 million with a decrease of 21% year over year.

  • Revenues from the United States, EMEA, APAC, and Other Americas were $18.9 billion, $12.8 billion, $7.2 billion, and $2.2 billion, respectively.

  • Cost of revenues was $19.0 billion, consisting of TAC of $7.5 billion and other cost of revenues of $11.5 billion. TAC as a percentage of advertising revenues ("TAC rate") was 22.1%.

  • Operating expenses (excluding cost of revenues) were $14.2 billion.

  • Income from operations was $8.0 billion.

  • Other income (expense), net, was a loss of $220 million.

  • Effective tax rate was 11.9%.

  • Net income was $6.8 billion with diluted net income per share of $9.87.

  • Operating cash flow was $11.5 billion.

  • Capital expenditures were $6.0 billion.

  • Number of employees was 123,048 as of March 31, 2020. The majority of new hires during the quarter were engineers and product managers. By product area, the largest headcount additions were in Google Cloud and Search.

Alphabet revenue quarter by quarter
Alphabet operating expenses

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