Big Tech, Huge Earnings
Motley Fool Hidden Gems Investing
The Motley Fool
4.3 • 3.1K Ratings
🗓️ 30 April 2021
⏱️ 39 minutes
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| 0:00.0 | Everybody needs money. That's why they call it money. |
| 0:07.0 | From full global headquarters, this is Motley Fool Money. |
| 0:18.0 | It's the Motley Fool Money Radio Show. I'm Chris Hill joining me this week. |
| 0:22.0 | Senior analyst Jason Moser and Ron Gross. Good to see you as always gentlemen. |
| 0:26.0 | Hey, how you doing Chris? It is earnings, Paloza. There are so many big earning stories to get to. |
| 0:32.0 | We don't even have time for a guest this week. But as always, we've got a couple of stocks on our radar. |
| 0:37.0 | Let's start with the behemoths of big tech. |
| 0:40.0 | Alphabet's first quarter revenue came in north of $55 billion. |
| 0:44.0 | Profits were much higher than expected for Google's parent company. |
| 0:48.0 | And YouTube's revenue is starting to look a lot like Netflix's revenue. |
| 0:53.0 | Jason Moser, where do you want to start with Alphabet? |
| 0:56.0 | Well, I will say I watch a lot more YouTube than I do Netflix. |
| 1:00.0 | So it's nice to see that they're really capitalizing on that opportunity. |
| 1:04.0 | It was hard to imagine this not being a strong core given the signs that we've seen in ad spending. |
| 1:10.0 | So I mean, I wasn't personally, I wasn't really surprised by this report. |
| 1:14.0 | Very impressed, not surprised because when you look at the global digital ad market, |
| 1:20.0 | spending is forecast to grow from around $265 billion in 2020 to around $425 billion in 2024. |
| 1:28.0 | So you're talking 12.5% annualized growth projected here over the next several years. |
| 1:32.0 | And clearly alphabet in Google, they're going to be a part of capturing that. |
| 1:37.0 | As to the numbers, revenue of $55.3 billion of its up 32% constant currency, |
| 1:44.0 | that outpaced the total cost of revenue growth of 27% operating income, $16.4 billion was up 106% operating margin for this company was 30%. |
| 1:57.0 | To your point on YouTube advertising revenues there with YouTube, $6 billion up 49%. |
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