Alphabet Inc is a US tech company that just released amazing earnings. A stock split is due in the coming months.

Overview

Alphabet Inc A&C (NASDAQ: GOOGL, GOOG) is a US-based tech company centred around Search and Youtube and is one of the largest companies in the world with a market capitalization of around $2bn. Earnings were released last night (01.02.2022) and beat expectations. They also announced a stock split too, which will help the share price over the longer term as more retail investors can now buy shares in Alphabet (or Google).

Financials

The numbers released on earnings were great. Q4 revenue was $75.3bn (32% higher YoY) with a Net income of $20.64bn. Google ads made up $43.3bn, YouTube made up $8.63bn with the remainder coming from cloud, network and other services. Impressive. Looking at the balance sheet it's also very good. Total cash on hand was tiny at just $20.945bn, but they do have something called marketable securities totalling $118.7bn. Meaning cash and equivalents were $139.65bn. Total assets were $359.3bn with total liabilities at just $107.6bn, leaving Alphabet net positive $251.6bn.

Technicals

From a technical standpoint, the stock remains in an uptrend with support down to the $2,500 level. Looking towards the upside, initial targets are $3,100, followed by $3,500. RSI reads 63, but just a few days ago was oversold at 23, therefore, a pullback in the stock could be possible. Investors need to regain confidence in technology stocks before this can continue to pump higher.

Summary

Overall Aphlabet is a solid stock, it is 1 of a handful of shares that actually have a real influence over society today. The 10% gain today was quite strong so investors will now be making the decision as to whether keep the stock and sell it back at the highs again. Given a stock split has been approved investment from a retail point of retail is going to grow immensely, causing demand for the stock, like what happened with Tesla. A stock split is due on 15th July, investors will get 19 extra shares for each share they own.