Alphabet (GOOGL) 4Q2018 Results show 22% Revenue Growth to $39B. EPS wasm12.77. Profit margin trending down to 22% from 24%.
Amazon as a new competitor while Facebook (FB) remains its primary competitor in advertising.
Cloud and Other Bets businesses (Waymo etc.) hold some promIse but not yet material to impact top and bottom line.
GOOGL has net cash of $104B which equates to $150 per share. At current trading price of $1100 excluding cash a buyer pays $950 per share so assuming $48 to $50 EPS in 2019 one is paying 20 times earnings. GOOGL is a good value as a company that is a dominant market leader with secular tailwind in online advertising and growth prospects in AI trading at 20 times forward earnings excluding cash.
Alphabet 4Q2018 Results
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