Google: Big Year-Over-Year Improvements Despite Cloud Disappointments

Summary:

  • Google’s cloud business has challenges ahead but it is a small part of Google’s overall valuation.
  • Google Cloud’s growth rate has slowed down compared to Microsoft Azure.
  • The overall operating income and revenue of Google have improved nicely from Q3 2022 to Q3 2023.

Tech

400tmax

Introduction

My August 1st article talks about some ways Google’s (NASDAQ:GOOGL) (NASDAQ:GOOG) work on quantum computing has potential to change the world. Since that time, a September 5th article in New Scientist says

Google

Cloud

Microsoft

Azure

AWS

Sep 2020

45%

48%

29%

Dec 2020

47%

61%

28%

Mar 2021

46%

50%

32%

Jun 2021

54%

51%

37%

Sep 2021

45%

50%

39%

Dec 2021

45%

46%

40%

Mar 2022

44%

46%

37%

Jun 2022

36%

40%

33%

Sep 2022

38%

35%

28%

Dec 2022

32%

31%

20%

Mar 2023

28%

27%

16%

Jun 2023

28%

26%

12%

Sep 2023

22%

29%

12%

in millions $

Google Cloud

Qtr End

Google Cloud

Operating Income

Google Cloud

Revenue

AWS

Qtr End

AWS

Operating Income

AWS

Revenue

Dec 2019

$ (1,194)

$2,614

Dec 2015

$580

$2,405

Mar 2020

$ (1,730)

$2,777

Mar 2016

$604

$2,566

Jun 2020

$ (1,426)

$3,007

Jun 2016

$718

$2,886

Sep 2020

$ (1,208)

$3,444

Sep 2016

$861

$3,231

Dec 2020

$ (1,243)

$3,831

Dec 2016

$926

$3,536

Mar 2021

$ (974)

$4,047

Mar 2017

$890

$3,661

Jun 2021

$ (591)

$4,628

Jun 2017

$916

$4,100

Sep 2021

$ (644)

$4,990

Sep 2017

$1,171

$4,584

Dec 2021

$ (890)

$5,541

Dec 2017

$1,354

$5,113

Mar 2022

$ (931)

$5,821

Mar 2018

$1,400

$5,442

Jun 2022

$ (858)

$6,276

Jun 2018

$1,642

$6,105

Sep 2022

$ (699)

$6,868

Sep 2018

$2,077

$6,679

Dec 2022

$ (480)

$7,315

Dec 2018

$2,177

$7,430

Mar 2023

$ 191

$7,454

Mar 2019

$2,223

$7,696

Jun 2023

$ 395

$8,031

Jun 2019

$2,121

$8,381

Sep 2023

$ 266

$8,411

Sep 2019

$2,261

$8,995

$ (12,016)

$ 85,055

$ 21,921

$ 82,810


Analyst’s Disclosure: I/we have a beneficial long position in the shares of GOOG, GOOGL, AMZN, MSFT, VOO 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.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


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