Google: The Hidden Truth Behind Accounting Boosts (Archive)

Unmasking Alphabet’s earnings: separating one-off accounting boosts from true operating strength.

Google: The Hidden Truth Behind Accounting Boosts (Archive)

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

  • In a quarter ripe with one-time adjustments, non-core FX impacts and accounting assumption changes, it is important to extract the hidden, like-for-like comparable truth behind the numbers.
  • Search revenue is more resilient than it looks.
  • Margin and productivity levers are abound.
  • Cloud margin expansion thesis is not playing out.
  • Overall, the positives outweigh the negatives.

Read the full article here.

Disclosures and Disclaimers

Past performance ≠ future results. Not investment advice. See full Disclaimer.