Google parent Alphabet to report 4Q results as market capitalization hits $1 trillion mark

Google parent Alphabet to report 4Q results as market capitalization hits $1 trillion mark

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Alphabet Inc (NASDAQ:GOOG), the parent company of internet giant Google, will report fourth-quarter financial results Monday as its market capitalization hits the $1 trillion mark.  Andy Hargreaves of Key Banc Capital Markets said in a note to investors that he expects the tech giant to post net advertising revenue growth of 17.7% and a 53.6% gross margin for the quarter.  At CMC Markets UK, market analyst David Madden noted that on a year-on-year basis, paid clicks on Google properties jumped by 18%, while cost-per-click fell by 2%.  READ: Google’s parent Alphabet hits US$1 trillion market value Advertising revenue accounts for the vast majority of Alphabet’s total income, but the unit that includes the cloud business, as well as the phone operation, showed a 38% jump in revenue on a yearly basis, he said.  Traders will be keen to find out if non-core areas of the business are performing well, especially in light of the increase in capital expenditure. The tech giant isn’t short of cash, but traders will want to see that funds are used efficiently, Madden added.  Alphabet shares are off to a good start to the year, posting a 7% gain in January. The stock gained 29% in 2019, a solid absolute return, but one which lagged behind the 35% return for the Nasdaq Composite. Alphabet’s stock recently traded up 2% to $1.463 a share in New York. 

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