Google Makes $5,000 Per Second!

By the time you finished reading that title, Google probably collected $20,000 in revenue. And this cash machine runs 24/7. Unlike brick and mortar stores, it doesn’t have to close its door at 5 PM. Yesterday, Alphabet Inc. (NASDAQ: GOOG, GOOGL) announced financial results for the quarter ended June 30, 2019.

The revenue for the Three Months Ended June 30, 2019, was $38.9 billion. A year ago, in the same quarter, the revenue was $32.6 billion, which is an increase of 19% year over year. A year ago it grew by 26%. Most of their revenue comes from their advertising, but lately, we are seeing quite an increase in Google other revenue segments, which primarily is Google cloud business.

Diluted EPS was $14.21. A year ago it was $4.54.

The segment revenue is listed below.

Net cash provided by operating activities was $12.6 billion. A year ago it was $10.1 billion.

Diluted earnings per share of Class A and B common stock and Class C capital stock for the period of Six Months Ended June 30, is $23.74.

Total cash, cash equivalents, and marketable securities is $121 billion with virtually no debt (Just $4 billion.) With the 348 million shares outstanding, their cash per share is $68. As of today, their stock is selling at $1,250 per share.

Their key metrics like cost-per-click is decreasing at the same time paid clicks are increasing. The traffic acquisition cost to Google Network Members is decreasing. We are one of its network members. A new addition to the clan.

Traffic acquisition costs (TAC) to Google Network Members and distribution partners:

Monetization metrics information:

Stock Repurchase

On July 24, 2019, the Board of Directors of Alphabet authorized the company to repurchase up to an additional $25.0 billion of its Class C capital stock. The repurchase is expected to be executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans.

All in all, Google is a great company. Hence, our darling holding.

Google’s core products and platforms such as Android, Chrome, Gmail, Google Drive, Google Maps, Google Play, Search, and YouTube each have over one billion monthly active users.