Alphabet Stock Earnings: GOOGL gains on beat, but YouTube and ad network decline
|- Alphabet stock jumped on earnings beat.
- Owner of Google reported $1.17 in GAAP EPS.
- YouTube and Ad Network see revenue drop YoY.
- Google Cloud brought in most of the growth in the quarter.
Alphabet (GOOGL) stock rose 3.5% afterhours on Tuesday to $108.26. The owner of Google reported $1.17 per share in GAAP earnings, a full 10 cents ahead of consensus. Revenue of $69.8 billion was nearly a billion dollars ahead of consensus but rose less than 3% YoY.
Alphabet stock news
Cuts to office space and the workforce came to an extra $2.6 billion above expectations in the quarter, without which earnings would have been nicely higher. The company's board made the decision to allow the company to buy up as much as $70 billion worth of stock, which is one reason the stock advanced.
"We are pleased with our business performance in the first quarter, with Search performing well and momentum in Cloud," CEO Sundar Pichai said. CFO Ruth Porat said she was working on cutting back the company's expenses, which are often taken as a byword for bloat in Silicon Valley. Though the headcount grew 16% YoY, Google has plans to cut 12,000 employees, which will be reflected in second quarter results.
Google Cloud had sales of $7.45 billion, up 28% YoY. Google Search brought in $40.4 billion in the quarter, up 2% YoY. YouTube ads drew $6.7 billion, down 3% YoY, while Google Network ads fell more than 8% YoY to $7.5 billion. Meanwhile, the "other" segment turned in $7.4 billion in sales, up 9%YoY. Traffic acquisition costs dropped to $7.2 billion.
Alphabet stock forecast
The post-market session pushed Alphabet stock up to early February's resistance stopout at $108. If bulls can make it past here tomorrow, then they will seek out the $111.50 resistance point from September 2022. Support is at $102 and $100.
GOOGL daily chart
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