Google: Recalibrating Before Q1 FY23 Results (Archive)
Recalibrating Google Cloud margins before Q1 FY23 to frame an impending revenue beat.
This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.
Elevator Pitch
- Google will probably print higher margins for its cloud business in Q1 FY23, which agrees with my view on the surprise potential of Google Cloud margins.
- But this print will only be optical, aided by a segmental reclassification that would boost Cloud Margins by 400bps at the expense of a 150bps hit on Services margins.
- I believe a revenue beat is likely as consensus estimates don't seem to factor in the more positive industry outlook trends in 2023.
Read the full article here.
Disclosures and Disclaimers
Past performance ≠ future results. Not investment advice. See full Disclaimer.
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