Alphabet’s shares have defied gravity, soaring 25.5% this year, outpacing the industry’s 21.2% growth. The star of the show? Google Services. Fuelled by Search, YouTube, Android, Pixel, and its arsenal of web apps, this segment is the cash cow. In the first quarter of 2024 alone, Google Services raked in $70.4 billion, a 13.6% surge year over year, making up a staggering 87.4% of total revenues.
Elevating Google Services to New Heights
Google has been working tirelessly behind the scenes, sprucing up its web apps. Initiatives like the Material 3 redesign for Google Photos and Google Pay are transforming user experiences. The revamped interfaces promise a seamless user journey, featuring slick designs and improved functionality, all in a bid to dominate the digital landscape.
Innovative Google Services Initiatives
Recent additions like the “Listen to this page” voice feature on Google Chrome and the indoor building entrances on Google Maps are pushing boundaries. With these enhancements, Alphabet is not only enhancing user engagement but also solidifying its grip on the Android and Pixel domains. Moreover, its strategic partnership with Peloton Interactive to expand YouTube TV subscriptions speaks volumes of the company’s ambition.
These bold moves are poised to captivate users across Search, YouTube, Android, Pixel, and the web apps ecosystem, propelling Alphabet’s financial might in the short term. Analysts have set a Zacks Consensus Estimate for 2024 total revenues at $291.26 billion, signaling a robust 13.6% growth. Earnings for the same period are anticipated to climb to $7.60 per share, a handsome 31.03% surge from last year, with a recent 0.4% upward revision.
Zacks Rank & Other Gems in Tech
With a stellar Zacks Rank #1 (Strong Buy), Alphabet is leading the charge. Joining the tech titan on the winners’ podium are Arista Networks and Badger Meter, each flaunting a Zacks Rank #1. Arista Networks has leaped 30.6% this year, while Badger Meter saw a 27% upsurge. These promising stocks carry long-term earnings growth rates of 15.68% and 15.57%, respectively, painting a rosy picture of the tech landscape.