Google: Still Waiting For Its ‘Meta Moment’

Summary:

  • Alphabet reported Q2 results that exceeded expectations, as revenues increased 7.1% (Y/Y), and EPS came in at $1.45, a $0.10 beat.
  • With its return to growth, improved profitability, headcount optimization, and impressive AI execution, Alphabet is positioned for its ‘Meta Moment’, and has laid the groundwork for a multiple expansion.
  • However, Alphabet is still lagging behind Microsoft with product releases and is unable to take share from Azure.
  • Furthermore, the lackluster growth in its core advertising businesses reflects the ad market recovery will take a few more quarters.
  • I reiterate Alphabet stock as a Buy and expect to see a multiple expansion in the near term, but I believe there are still areas for major improvement before Alphabet returns to its historical valuation.

Major Tech Companies To Report Earnings

Justin Sullivan

Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) just announced Q2 results that beat expectations, as revenues increased 7.1% (Y/Y), and EPS came in at $1.45, a $0.10 beat.

With its return to growth, improved profitability, headcount optimization, and impressive AI execution, Alphabet is positioned for


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