Alphabet (Google) beats forecasts and moves full steam ahead despite legal storm

Markets have welcomed with open arms the results of Alphabet, Google’s parent company, which exceeded all expectations. The firm, run by Sundai Pichar, has left no loophole for investors to panic. despite the legal storm that threatens the firm and He unconditionally fulfilled all the responsibilities that analysts assigned to him. The company notes this with an increase of up to 4% in after closing Wall Street.

So Google registered Revenue was $88.27 billion, up 15% from last year.which is significantly higher than the expected figure of 86.45 billion, according to analyst consensus. Its earnings also beat expectations: $2.12 per share versus estimates of $1.84. If you subtract user acquisition costs, this is equivalent to approximately $28.52 billion, exceeding the markets’ estimate of $26.67 billion.

The data for the main business segments is even more positive. searcha segment in which the company faces competition for the first time in decades since the advent of AI chats, it entered 49.39 billion, beating the expected 49.08 billion. YouTube earned $8.92 billion, beating expectations of $8.89 billion, and managed to exceed $50 billion in annual revenue between advertising and subscriptions for the first time in its history. Google Cloudone of the “weakest” branches of the firm, managed to earn 11,350 million compared to the estimated 10,790. and area servicesthe future of the company, reached 76,510 million compared to the calculated 75,240 million.

Thus, Alphabet begins a week during which five of the Magnificent Seven will be under the scrutiny of analysts. The firm, run by Sundar Pichai, has some very tense months in court: first with condemnation for monopoly and the threat of forced partition hanging over his head; and then another sentence, still suspended, which will force him suggest an alternative to the Play Store to download applications on Android phones.

Against the backdrop of such a judicial panorama, the company’s excellent results still remain in the background. Investors first need to know what real risks the company faces. Maximum care for the company, which trading at 22 times its historical average of 27 times.which is a sign that the market has paused its stock market potential due to regulatory uncertainty.

“It’s easy to shout about a company’s valuation, but there are a lot of fears that are hard to quantify, which means I can’t say yet whether this is a value or a value trap“George Cipolloni, portfolio manager at Penn Mutual Asset Management, commented ahead of the results. “It is obvious that It seems cheap compared to other Magnificent Sevens, but that’s relative because of the risk you’re taking.Despite this, there are still high hopes that it will avoid being dismembered like Microsoft did.

The company also this month replaced Prabhakar Raghavan, the head of search and advertising at the heart of Google, in an attempt to address the risks that AI poses to its traditional business model.