Q4 Surprise: Google Generates $3.8 Billion More Free Cash Flow Than Exxon


  • The general narrative in the financial media (and the White House) is, apparently, that “Big Tech is dead” while oil is evil and massively profitable.
  • That being the case, investors may be surprised to learn that Google generated $16.02 billion in free cash flow in Q4. That was $3.75 billion more than Exxon.
  • Meanwhile, Google’s results were somehow “disappointing” while Exxon’s results were “so good” they were denounced by the White House.
  • My point is this: Investors who want to build and hold a well-diversified portfolio for the long term should not be dissuaded from doing so by false narratives based on cherry-picked data.
  • Google will likely trade down today after a 7.3% rally Thursday and in light of its Q4 “miss.” GOOG is a BUY on the pullback – and here’s why.
Parent Company Of Google, Alphabet Reports Quarterly Earnings

Justin Sullivan

After the 2022 bear-market mauling of the technology sector, and the corresponding huge out-performance by oil and gas stocks (see graphic below), the general consensus in the financial press appears to be that “Big Tech is dead” and that investors should get ready for a

Disclosure: I/we have a beneficial long position in the shares of GOOG, XOM, CVX, VOO, QQQ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I am an electronics engineer, not a CFA. The information and data presented in this article were obtained from company documents and/or sources believed to be reliable, but have not been independently verified. Therefore, the author cannot guarantee their accuracy. Please do your own research and contact a qualified investment advisor. I am not responsible for the investment decisions you make.

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