Highlights:
- Alphabet quarterly sales jumped to $75.3 billion, up 32% year-over-year.
- Announced a 20-for-1 Stock Split, to be approved by stockholders on July 1st, 2022.
Google’s parent company Alphabet, reported its fourth quarter fiscal 2021 earnings results after the closing bell on Tuesday. The company beat analysts’ top and bottom line expectations. Shares rose more than 9% in the after market hours.
Alphabet’s quarterly sales jumped to $75.3 billion, up 32% year-over-year. This was above the street estimates of $72 billion. Total revenue was $74.9 billion vs. $71.652 estimated.
EPS (Earnings Per Share) was $30.69 vs. $30.01 estimated. Cloud revenue came in at $5.5 billion, up from $3.8 billion in 2020.
Alphabet’s Cloud Business has been in focus, as the company works to gain market share from Microsoft Azure’s and Amazon’s AWS cloud services.
‘’Q4 saw ongoing strong growth in our advertising business, which helped millions of businesses thrive and find new customers, a quarterly sales record for our Pixel phones despite supply constraints, and our Cloud business continuing to grow strongly.” Alphabet’s CEO, Sundar Pichai said in a statement.
20 for 1 Stock Split:
The company announced a 20 for 1 stock split, in their latest quarterly earnings statement. Alphabet Board of Directors intends to split the Class A, Class B, and Class C of the stock. The stock split would require approval of the company’s stockholders of record at the close of business on July 1st, 2022.
Shares of Alphabet have become increasingly expensive over the last two years, as the stock doubled off the pandemic lows of 2020. This stock split would effectively make the company more attractive to the average investor.
With record quarterly sales and an upcoming stock split, Alphabet should remain a top mega-cap tech stock to watch for 2022.
Disclosure: The author holds no position in Alphabet Inc. Freedom Stocks has a disclosure policy.
