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Alphabet analysis (#GOOG)

Alphabet analysis (#GOOG)

6 May 2021

Alphabet is an American multinational corporation. At the moment, the main asset of the company is Google, which invests in Internet search, cloud computing and advertising technologies. Google maintains and develops a range of Internet services and products and get revenues primarily from advertising through its Ads program.

Google also operates more than a million servers in data centers around the world and processes more than one billion searches every day. Google’s rapid growth since its foundation has resulted in a large number of products not directly related to the company’s main product – the search engine. Google has online products such as Gmail, Google+, Google Chrome, Picasa, and Hangouts.

The company is the undisputed leader in the Internet search market. In other business segments, Alphabet competes with tech giants such as Amazon, Apple and Microsoft.


2020 Revenue: $ 182.5B (+ 13% YoY)

2020 Operating Profit: $ 41.2B (+ 20% YoY)

2020 net income: $ 40.3B (+ 17% yoy)

Earnings per share last quarter: $ 22.30, above $ 15.99 forecast

Alphabet technology solutions for companies have become even more popular during the pandemic.

Distribution of revenue by business segment:

Google – 87.65%

Google cloud – 11.89%

Other Bets – 0.36%

Hedging gains – 0.10%

The company is one of the leaders in the Internet search and cloud computing market, which is undoubtedly highly appreciated by investors. Despite the fact that the company does not pay dividends, the company’s quoted shares have shown steady double-digit annual capital gains over the past few years.

Separately, it should be noted that antitrust committees in many countries are fighting the so-called Big Tech, which includes Alphabet. This can lead to many lawsuits against the company. However, all the current lawsuits pose no threat to the company.

Thus, Alphabet is a mature technology company known practically all over the world. But, even in spite of the current market share, the company’s growth potential remains good and even antitrust lawsuits do not have a significant impact on the company’s operating indicators.

The head of the trading department at Aravana Capital Management comments:

“GOOG is still one of the flagships of the American market. At the moment, we see a steady upward trend for almost a whole year. Which begs a correction to 1700 levels from the current 2100. I am sure that it is relatively safe to invest from 1700 levels. The targets will be the levels of the previous highs of 2150 and 2400 ”.

6 May 2021
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