Google (Alphabet) announced quarterly earnings and revenues beat expectations. As per CEO Sundar Pichai:
“Our strong performance this quarter highlights ongoing strength in Search and momentum in Cloud. We are innovating at every layer of the AI stack. Our longstanding infrastructure leadership and in-house research teams position us well as technology evolves and as we pursue the many opportunities ahead.”
For some perspective, Google Cloud is 3rd biggest (behind Amazon at #1 and Microsoft at #2), and it accelerating (now over $10B in quarterly revenues).
However, it is still advertising that brings in the overwhelming majority of the profits.
Alphabet is a wide-moat juggernaut of a business that contnues to grow at a healthy clip.
We are long Google (big position) in our Disciplined Growth Portfolio (and look forward to many years of continuing growth, courtesy of the cloud and the powerful ad revenue from the ongoing digital revolution megatrend).