The chart below shows how GOOG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GOOG sees a -3.03% change in stock price 10 days leading up to the earnings, and a -3.33% change 10 days following the report. On the earnings day itself, the stock moves by +1.07%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Earnings Per Share Surge: Alphabet Inc. reported a Q4 2024 EPS of $2.15, exceeding expectations of $2.12, reflecting a 31% year-over-year increase in earnings per share.
Q4 Revenue Surge: Total revenue for Q4 2024 reached $96.5 billion, marking a 12% increase year-over-year, driven by strong performance in Search and Cloud services.
Cloud Revenue Surge: Google Cloud revenue grew by 30% year-over-year to $12 billion in Q4 2024, significantly outpacing overall cloud market growth.
Operating Income Surge: Operating income increased by 31% to $31 billion in Q4 2024, with an operating margin expansion to 32%, up 4.6 points from the previous year.
Shareholder Returns Strategy: Alphabet returned nearly $70 billion to shareholders in 2024 through share repurchases and dividends, including $15 billion in share buybacks in Q4 alone.
Negative
Network Advertising Decline: Network advertising revenue decreased by 4% to $8 billion, indicating a decline in performance compared to the previous year.
Rising Operational Costs: Total cost of revenue increased by 8% to $40.6 billion, outpacing revenue growth and indicating rising operational costs.
Cost Management Challenges: Operating expenses decreased by only 1% to $24.9 billion, suggesting limited cost management effectiveness despite rising revenues.
Other Bets Financial Struggles: Other Bets segment reported a revenue of only $400 million with an operating loss of $1.2 billion, highlighting ongoing financial struggles in this area.
Rising Depreciation Expenses: Depreciation expenses grew by 28% year-over-year, indicating increased pressure on profitability due to higher capital expenditures.
Alphabet Inc. (NASDAQ:GOOGL) Q4 2024 Earnings Call Transcript
GOOGL.O
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