Alphabet (NASDAQ: GOOG) stock price extended the upside momentum following earnings beat and high double-digit growth in earnings. The company is seeking to sustain financial growth momentum through investments in artificial intelligence, ambient computing, and cloud computing. Its business strategies are permitting it to get a massive online ad share.
Alphabet stock price soared close 25 per cent in the past six months. GOOG share price is currently hovering close to the record level of $1500. Market pundits are showing confidence in the future fundamentals of the world’s largest Internet Content & Information Company.
Fourth Quarter and Fiscal 2019 Results Supports Alphabet Stock Upside
Although Google missed a fourth-quarter revenue estimate slightly by $700ml, its earnings per share topped the consensus by $2.81 per share. Its fourth-quarter revenue grew 17 per cent from the past year period. Fiscal 2019 revenue of $160bn jumped 18 per cent from the previous year.
The company had generated $15bn of revenue from YouTube ads, up 36 per cent from the past year. The cloud revenue of $10bn increased by 53 per cent from 2018. Its net income of $10.6bn grew significantly from earnings of $8.9bn in the year-ago period.
“Our investments in deep computer science, including artificial intelligence, ambient computing, and cloud computing, provide a strong base for continued growth and new opportunities across Alphabet,” said Sundar Pichai, Chief Executive Officer of Alphabet and Google.
Alphabet Plans to Sustain the Financial Growth Momentum
The company is seeking to sustain its momentum in 2020. They are working on four priorities to extend the momentum. These strategies include: creating the most helpful products for everyone, providing the most trusted experiences for users, executing at scale and creating sustainable value. Alphabet has generated $8.7bn in free cash flows in the latest quarter. The solid cash position strengthens its investment potential in growth opportunities. The market analysts are anticipating a steady upside for GOOG share price in 2020.
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