Alphabet earnings call writeup

Sharing is Caring!

by qwerty622

-very strong growth in cloud, specifically in their google suites offering (analytics tools and shit for cloud). Up 52 percent YOY

  • increase in searches but less commercial searches (ex. increase in “sue bae titties”, decrease in “how much real estate can i buy for 10$”) no surprise there.
  • 30 percent increase in google play downloads. also noted was an increase in user engagement and average time spent on apps from gplay.
  • youtube watching time increased during corona (no surprise) but what’s interesting is that people are now using it as a news source. i grew up with youtube and never did, but i noticed that the whitehouse.gov/live feeds were all being hosted on youtube. that’s pretty wild.
  • sundar mentioned direct response advertising growth on youtube. a quick google search makes it seem that its better than typical advertising because it mines your search history for patterns vs typical “demographic searches” traditional advertising uses.
  • decreases in brand advertising. no surprise here. expected to pick back up eventually .

some interesting notes on their forward guidance.

  • google is definitely seeing a macro shift to digital on things people were sitting on the fence on before (example: virtual showrooms for real estate). also noted a definite interest in WFH from hospital systems (for their IT depts.) etc.
  • the CFO also mentioned they would be doing share repurchases (always a good thing) at a similar rate to q4 2019. so that’s about 6.4 billion dollars.
  • Google decided to make google shopping free to list on for sellers for the time being. interesting because it seems that they are willing to sacrifice short term rev on this end for long term customer relations. i wonder if amazon is doing anything similar. could give them some headwinds in scaling against amzn.
  • Overall, Corona took away from what was expected to be another strong quarter. The biggest areas which Sundar focused on were google clouds as expected, but more the Gsuite, which is having very strong growth, notably more than their cloud services. it seems that they are positioning themselves well to offer analytical tools to help businesses execute well.
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