Shares of Alphabet (GOOGL) gained in after-hours trading after the tech titan reported its Q3 results. Earnings per share came in at $2.87, which beat analysts’ consensus estimate of $2.26 per share. At the same time, revenue climbed 16% to $102.35 billion, beating expectations of $99.94 billion.
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Furthermore, Google Cloud grew from $11.35 billion to $15.2 billion year-over-year, which beat analysts’ expectations of $14.74 billion. YouTube advertising revenue also topped estimates after coming in at $10.26 billion. For reference, Wall Street was anticipating $10.01 billion. Interestingly, Google’s more predictable cloud revenue has been steadily growing over the years to surpass YouTube’s more volatile ad revenue, according to the image below.
In addition, Alphabet’s revenues for its other segments were as follows:
- Google Search and other: $56.57B (up 14.5%)
- Google Network: $7.35B (down 2.6%)
- Google subscriptions, platforms, and devices: $12.87B (up 20.7%)
- Other Bets: $344M (down 11.3%)
Are Google Shares a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Alphabet stock based on 28 Buys and eight Holds assigned in the past three months. Furthermore, the average Alphabet price target of $267.53 per share implies that shares are trading near fair value. However, it’s worth noting that estimates will likely change following today’s earnings report.
