Alphabet or the mother company of Google is currently negotiated just below 2800 USD per share. Alphabet recently announced a distribution of actions of 20 by 1 from July 15, 2022. What it means is that for each Google stock that you have, you will be rewarded with 19 additional actions on July 15. Google is currently my highest conviction. The huge ditch of the alphabet, the impeccable assessment and the OMI one of the best evaluated mega-spaces which are still developing extremely quickly.
The alphabet stock fraction also reduces the course of the action by 20 times. For example, if Google Currently negotiated at USD $ 3,000 by the split, its new price after the split will be $ 150 USD.
Anyway, the purpose of this article is to dive in depth and to see the commercial model of the alphabet, and how diversified it is, in case you probably want to choose some actions on DIP. Let me tell you that for the long term or the purchase and maintenance from 5 to 10 years, you can choose Google for any price now, and you don’t have to wait a drop. The action is currently negotiated at a p / e of 25.
Total income during the fourth quarter of 2021 reached $ 75.3 billion, an increase of 32% from one year to the next. The operating margin during the 2021 full year came more than healthy, at 31% of income.
Another thing to note here is that Google is negotiated on class A, B and C. actions whatever the class you have or buy, you will get the 19 additional actions. Class B is the restricted class that does not negotiate on the free market. It’s more for Larry and Sergey, the founders to vote.
Commercial model / Diversification of alphabet activities:
1. Google dominates the online research market, world leaves more than 85%.
Like Bert, mom recognizes the importance of “to” in a research sentence “in USA”. By taking things further, mom is multimodal, which means that he can use various formats such as web pages, photos and videos. Mom can synthesize information of more than one language, so that it can use Japanese sources if a user hits a research request on the differences between the climbing of Mount Whitney in California and Mount Fuji in Japan.
2. As you all know, the expected resurgence of global economies, flights and purchases, bleeding in digital advertising. Digital advertising revenues will increase by 20% of TCAC until 2028, according to market reports. Google is n ° 1 on the list, followed by Facebook and Amazon. Again, Amazon’s digital advertising revenues have nothing to do with Google. So Googl clearly dominates here.
3. YouTube, which is the alphabet video platform is ready to attract more advertisers and order higher prices over time. Bank of America provides that Youtube’s subscription activities will reach $ 18 billion in revenue by 2025, compared to $ 5 billion in 2020. Now is a massive growth of almost 3.5 times net income.
YouTube advertising revenues reached $ 8.63 billion, increasing by 25% compared to the same quarter of last year. The platform has reached five billions of views of all time during the quarter, and it now has more than fifteen billion views every day in the world. In the past year, the number of YouTube channels that has generated at least $ 10,000 in income increased by more than 40% from one year to the next.
4. Possible R&D movers, such as autonomous technology for Waymo cars technology. Although I am not very optimistic here.
5. Did you even know that Alphabet has acquired a participation of $ 900 million in SpaceX in 2015 and apparently has participation.
6. The alphabet foot on the fast -growing public cloud market is enormous with 40% + growth in the last 5 quarters. Although the Cloud company is not yet profitable for alphabet, it will ultimately be. Currently, AWS commands the UNO Spot number, followed by Azure and Third Google Cloud. The operating margins of Cloud Computing should improve. The transformation of business profits into cloud computing would be a big catalyst for Google Stock. Google Cloud will display $ 3.6 billion in 2023, compared to $ 5.6 billion in 2020, predicts Bofa. Google Cloud aimed to stand out with artificial intelligence tools, cybersecurity and container software technology. Could be forced to break, which would probably lead to the spin-off of non-profitable companies.
The Cloud company also shoots all cylinders. Cloud income increased by 45% over the other year to 5.5 billion dollars in the last quarter. The alphabet arrears increased by more than 70% to $ 51 billion, most of which are allocated to Google Cloud.
7. The education market in particular in the developing world massively adopts the “platform” of Google because Office 365 is too expensive.
8. Small businesses go fully with Google Shops and Road Tuesdays.
9. After Google Search and YouTube, we have the dominant global market share of Android of smartphones. Android feeds more than 85% of smartphones around the world, compared to Apple iOS which is slightly below 15%.
10. As you all know, Google Search, Android, Maps, Gmail, YouTube, Chrome Prolific Garden leaning over AI.
11. Alphabet bought shares totaling $ 9.1 billion, $ 18.4 billion and $ 31.1 billion in 2018, 2019 and 2020, respectively. And in April 2021, still authorized $ 50 billion for share buybacks.
12. In truth, the unity of life sciences could be extinguished in a first public offer.
13. Google’s strength in artificial intelligence extends over digital advertising, the Google Cloud, YouTube platform and consumption equipment.
14. Regarding Google’s place of play (since Meta, Apple and Microsoft are all considering the growth of Metaverse and Gaming) – The new Google Cloud game service, Stadi was launched at the end of 2019.
15. Finally, some other promising bets include fiber, nest, waymo, wing, verily (renowned life sciences), Makani, Malta who could ball at greater profits.
Finally, in the call of 4T21, the CEO of Alphabet, Pichai, said that the AI will be essential to make research, cards and YouTube even more useful in 2022. He said that they invest massively in AI and that they have good interfaces between AI teams and teams of main products such as research, so that social benefits can be productive.
He was underlined in the call 4Q21 that Bert, mother, ways and conversational experiences of the Power Lamda. These improvements are one of the reasons why Google has been able to increase advertising prices.
Thank you for reading! Please let me know your thoughts and comments below.
