Alphabet released quarterly report for quarter ending March 31, 2024.
Alphabet’s revenues reached $69.8 billion and $80.5 billion in the three months ended March 31, 2023 and in the three months ended March 31, 2024, respectively.
Alphabet’s revenues in Q1 2024 were up 15.3% year-on-year.
Operating income was $17.4 billion and $25.5 billion in Q1, 2023 and Q1 2024, respectively.
The operating income in Q1 2024 was up 31.8% year-on-year.
Google cloud segment’s operating income was only $900 million in Q1 2024.
Google services’ operating income was $27.9 billion in Q1 2024.
Other bet’s operating income was -$1 billion in Q1 2024.
Alphabet-level activities’ operating income was -$2.3 billion in Q1, 2024.
Net income hit $15 billion and $23.7 billion for Q1 2023 and Q1 2024, respectively.
Net cash provided by operating activities was $23.5 billion and $28.8 billion in Q1, 2023 and Q1 2024, respectively.
We reckon that the reasonable valuation is about $1.4 trillion.
Apple’s financial condition and operating results for Q2 2024.
Apple’s total net sales were $210.3 billion and $212 billion in the six months to March 30, 2024 and the six months to April 1, 2023, respectively.
Total net sales in the six months to March 30, 2024 were down 0.8% , compared with the same period in 2023.
The decrease in the six months to March 30, 2024 was due to Greater China’s drop in net sales.
We can see that Apple’s growth disappeared, which would trigger a decline in valuation.
Net income was $57.55 billion and $54.16 billion in the six months ended March 30, 2024 and the six months ended April 1, 2023, respectively.
Cash generated by operating activities was $62.59 billion and $62.57 billion in the six months to March 30, 2024 and April 1, 2023, respectively.
The cash generated by operating activities was flat.
Conclusion
We think that Apple’s lack of growth would reduce its valuation, and 15 times earnings is reasonable valuation, which is equivalent round $1.5 trillion.
We are curious, will Alphabet’s market capitalization exceed Apple company in fives years?
Disclaimer: The content is for reference only and does not constitute investment advice.