Alphabet’s economic results show the almost total dependence on Google’s work and how the motet other activities in which it is engaged are on the whole in strong loss
Alphabet is the parent company of Google, whose financial results for the first quarter of 2020 allow us to understand what health Google accounts enjoy. On the 41.159 billion dollars of Alphabet’s turnover 40.975 billion come from Google which therefore weighs 99.5% on the total turnover of Alphabet.
In the reference period, the company recorded a growth of 13%, which is very interesting given the global economic scenario. The majority of Google’s turnover obviously comes from the advertising market, for a value of 33.763 billion dollars: of this, a share of 24.502 billion dollars is linked to the results of the Google search, while the advertisements on Youtube recorded an equal value for just over $ 4 billion.
It is interesting to point out that among the Google services, the Cloud services have collected a turnover of 2.777 billion dollars: this is an increase of 52% compared to the corresponding period of 2019, confirming how consumers and professionals are increasingly using the cloud services.
Alphabet’s operating profit touched $ 8 billion, while Google’s operating profit alone reached $ 9.2 billion. The difference, decidedly substantial, is linked to the investment activities in new activities which represent the core of Alphabet and the reason why this company was set up by Google management in the past few years.
From Alphabet’s data we can, therefore, derive how many activities that see it engaged are still in great loss, rewarded by the high margins that Google is capable of . The latter has advertising activity at the centre of its business but registers a growing interest in the package of its cloud services.
