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Trader's Diary

Economic calendar

May
2025
Definície pojmov:
Earnings
IPOs
Splits
Week 19

Positive Outlook on Google's Impressive Quarter

Date: 24.7.2024

Yesterday was an exceptional day, especially for those invested in Alphabet Inc (NASDAQ: GOOG), the parent company of Google, as the company reported second-quarter earnings that not only beat Wall Street expectations but also showed significant progress in areas poised for further growth. On that basis, the results have significantly boosted my confidence in the tech giant's trajectory. [1]

Earnings Overview

 

Google reported second-quarter sales of $71.36 billion, excluding payouts to partners, surpassing the anticipated $70.7 billion. This impressive revenue was spearheaded by robust demand for its cloud computing services and sustained strength in search engine advertising. Net income also exceeded expectations at $1.89 per share against the forecasted $1.84, reaffirming Google’s profitability even amidst ambitious expansions[1].*

 

Strategic AI Investments Paying Off

 

Despite the high costs associated with integrating AI across its various platforms, including Gmail, Google Docs, and the search engine itself, the quarterly results indicate that these investments are beginning to bear fruit. This aligns with my optimistic view of Google's AI advancements as not just cost centres but as significant growth drivers. The company's proactive approach, even under the looming competition from OpenAI and Microsoft, appears to be a strategic win.

 

Cloud Computing Segment: A Hidden Gem

 

The real highlight for me in this quarter’s results was the performance of Google Cloud, which reported a profit of $1.17 billion, exceeding analysts’ expectations. This sector's profitability after years of investments underscores Google's potential to secure a larger share of the booming cloud market, challenging rivals like Amazon and Microsoft. Google Cloud's growth is particularly promising, given its appeal to AI startups and its increasingly integral role in providing AI infrastructure solutions.

 

Advertising and Search: Old Reliatives Remain Strong

 

The resilience of Google's advertising and search segments was also on full display, generating $48.5 billion in search advertising revenue alone. This dominance in search is crucial as it continues to be Google's cash cow, funding other more speculative ventures. Such a financial backbone supports my optimistic stance on the company's ability to innovate without jeopardizing its core revenue streams.

 

Concerns and Forward-Looking Statements

 

While Alphabet’s shares experienced some fluctuations in after-hours trading, likely due to higher-than-expected capital expenditures of $13.2 billion, I view this as a necessary step in bolstering its AI and computing capabilities.* Ruth Porat, Alphabet’s Chief Investment Officer, echoed sentiments of strong AI and cloud growth prospects in the earnings call, reinforcing my positive outlook.

 

Conclusion

 

Today’s earnings report from Alphabet was a testament to the company's robust fundamental health and its strategic positioning for future growth. As a trader, I am reassured by Google's performance and potential, particularly in AI and cloud computing. I remain bullish on Alphabet’s shares, seeing the current market reactions as short-term adjustments rather than reflections of long-term value. The forward momentum in AI and cloud, backed by solid financials, suggests a bright horizon for Alphabet. [2]

 

Next Steps

 

Based on today’s results and market movements, I plan to hold my position in Alphabet and monitor upcoming developments, particularly in cloud computing and AI innovations. The strategic directions outlined by the new CFO joining next month will also be critical in assessing any adjustments to my investment approach.

 

 

 

* Past performance is no guarantee of future results

 

[1], [2] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.


[1] the development of Alphabet shares over the last five years: https://tradingeconomics.com/goog:us

 

Date: 3.7.2024
Dodávky vozidiel Tesla klesli, avšak prekonali očakávania

Keď sa zamyslím nad nedávnymi výsledkami spoločnosti Tesla za druhý štvrťrok, je zrejmé, že priekopník v oblasti elektrických vozidiel (EV) sa naďalej dokáže pohybovať v prostredí tvrdej konkurencie a klesajúceho dopytu. Napriek poklesu dodávok dokázala prekonať očakávania trhu, čo jej zabezpečilo nárast hodnoty akcií o 10% a dostali sa takmer na 6-mesačné maximum.*

Date: 6.9.2023
Moderna aktualizovala svoju vakcínu proti COVID

Napriek tomu, že vírus Covid takmer upadol do úplného zabudnutia, v mnohých krajinách Európy sa znovu objavil. Takže aj keď sme si mysleli, že je to všetko konečne za nami, smutnou realitou je, že vírus je stále medzi nami. Rozhodol som sa preveriť farmaceutické spoločnosti, ktoré vyrábajú vakcíny proti Covid-u, a zistiť, či majú nejaké novinky. Nezostal som sklamaný, pretože článok na Reuters mi poskytol informácie o tom, že Moderna práve aktualizovala svoju vakcínu.

Date: 30.8.2023
Predaj áut v Európe v júli vzrástol

Napriek tomu, že ceny áut boli v poslednom roku veľmi vysoké, zdá sa, že ceny začínajú klesať. Našiel som článok na Reuters, ktorý potvrdzoval moje predpovede, a kde sa písalo, že európske predaje áut vzrástli v júli o 15%, zatiaľ čo predaje EV boli dramaticky vyššie na úrovni okolo 61%, čo je veľmi pekný skok.

Date: 23.8.2023
Microsoft a Activision budú ponúkať streamovacie práva

Myslím, že veľa ľudí našej generácie a mladších dôverne pozná hru Call of Duty. Bol to veľký hit za mojich tínedžerských rokov a stále mám na toto obdobie pekné spomienky, aj keď boli vytvorené online. Pred časom sa objavili správy, že spoločnosť Activision, tvorcu spomínanej hry, kupuje Microsoft. Teraz som našiel články, že sa na pozadí dejú ešte ďalšie veci.

Date: 9.8.2023
IPO spoločnosti Arm sa blíži

V dnešnom denníku som sa to rozhodol urobiť trochu inak. Zvyčajne vždy robím poznámky o svojom obchodovaní, dnes však budem robiť poznámky pre seba o blížiacom sa IPO spoločnosti Arm. Rozhodol som sa to urobiť týmto spôsobom, pretože som si prečítal dva veľmi zaujímavé články o významných spoločnostiach, ktoré budú investovať do prvotnej verejnej ponuky akcií spoločnosti Arm.

Varovanie pred rizikom: Finančné rozdielové zmluvy sú zložité nástroje a sú spojené s vysokým rizikom rýchlych finančných strát v dôsledku pákového efektu. Na 87.79% účtov neprofesionálnych investorov dochádza k finančným stratám pri obchodovaní s finančnými rozdielovými zmluvami u tohto poskytovateľa. Mali by ste zvážiť, či chápete, ako finančné rozdielové zmluvy fungujú, a či si môžete dovoliť podstúpiť vysoké riziko, že utrpíte finančné straty.