GOOG Stock Forecast: A Tale of Thriving Revenue
This GOOG Stock Forecast article was written by Meiru Zhong – Financial Analyst at I Know First.Summary
- Alphabet earned revenue of US$76.7 billion, growing by 11% in Q3 2023 compared to Q3 2022. The operating income also grew by 24.6% to $21.3 billion because of strong demands for products and services and robust cost control.
- Google advertising had grown by 9% to $59,647 million in Q3’23 compared to last year. The growth was primarily driven by the increase in the number of users’ engagement and the average amount charged for advertisers for each click in Google Search & other properties (including YouTube) and offset by the decrease in the number of impressions and the average amount charged for each impression in Google Network.
- Alphabet's cost structure was robust, and its cost of revenue and operating costs had a stable proportion of the total revenue, about 44% and 29% respectively in Q3’23.
- GOOG repurchased US$15.9 billion shares in the third quarter and invested $8.1 billion capital expenditure in technical infrastructure for business expansion, signaling managers’ strong confidence.
- DCF valued GOOG at $142, a 4% upside potential compared to $136.94 on November 18, 2023.
