Traders looking to maximize profits trading shares of Google can alternatively look at single-stock exchange traded funds (ETFs). “Overall, we believe Alphabet is well positioned to benefit from an improving economic climate, which will accelerate ad spending,” the report added. “On the bottom line, while capital expenditure will not go down this year, the firm’s focus on efficiency should help expand margins beginning in 2024.”
“We were impressed by Google Search advertising revenue growth continuing strength in the cloud business, which is making headway toward profitability, likely next year consolidated margin expansion for the first time in three quarters and the latest authorized share buyback,” Morningstar said. In the case of Google, it means continued success in its cloud computing business, ad revenue, and even implementing share buybacks to boost the stock price. However, if inflation continues to dissipate and the Fed starts to back off on its rate-hiking policy, it could keep bullish investors appeased through the year and into 2024.
With a number of economic unknowns ahead, diversification of income will be necessary for Google to weather the storm, especially if a recession hits.
“The unit recorded operating income of $191 million in the quarter, following a $706 million loss a year ago.” Diversification of Income “Google is finally generating a profit in its cloud-computing business, which competes with Amazon and Microsoft,” the CNBC report added further.
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