Alphabet Stock in 10 Charts

Everything you need to know about Alphabet stock in 10 simple charts.

Author

Travis Hoium
September 28, 2023

Today’s Compounders Daily stock is Alphabet (Nasdaq: GOOG) (Nasdaq: GOOGL), better known as Google.

Alphabet stock has returned 486% in the last 10 years and 5,030% since its IPO in 2004.

Chart by Koyfin. Get 20% off Koyfin with our discount at this link.

Here is a look at Alphabet’s key metrics and business segments in 10 charts.

The 30,000-Foot View

Revenue is driven by the search business, which is still the core of Alphabet. In charts below, you’ll see how the Cloud is now the top growth driver.

Net income has been volatile but surged as advertisers spent more during the pandemic. As ad spending pulled back in 2023, so has net income.

Free cash flow follows earnings very closely and is now nearly 6x higher than a decade ago.

FCF margin has remained constant over the last 10 years.

How do we make our charts?

It starts with data from our partners at Koyfin, who bring a treasure trove of data to your fingertips. It’s easy to get started with Koyfin and you can get 20% off with this link!

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The Business Breakdown

Search is the biggest business at Alphabet and it also drives most of the company’s profits.

YouTube’s growth has stalled as advertisers pulled back the last year, but YouTube is now nearly as big as Disney’s media business from a revenue perspective (profits aren’t broken out).

The Google Network is a “group of search-related websites and apps where your ads can appear“. In short, it’s ads powered by Google.

The future growth of Alphabet will be driven by the cloud and more specifically artificial intelligence. You can see that this is a growth machine and for the last two quarters, the segment has been profitable.

Other Bets are businesses like Waymo that are in an investment phase, but not yet ready to be spun off or reported separately.

Did You Know?

Like Apple before it, Alphabet is now buying back shares at a steady clip. In the last five years, 8.4% of shares have been acquired.

Dive Deeper Into Alphabet

Want to dive deeper into Alphabet’s business? Here are 3 resources we use every day:

  1. Investor Relations: Press releases, earnings, SEC filings straight from Alphabet.

  2. Koyfin: Get financials, charts, transcripts, and much more all on Koyfin. It’s what we use to start research, so you know it’s good.

  3. Quartr: There’s no better way to listen to earnings reports than Quartr. And they recently added searchable transcripts and earnings presentations to the platform.

We will be back tomorrow with another compounder stock.

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Disclaimer: Compounders Daily provides analysis and research but DOES NOT provide individual financial advice. Travis Hoium and Jon Quast may have a position in some of the stocks mentioned. All content is for informational purposes only. Asymmetric Investing is not a registered investment, legal, or tax advisor or a broker/dealer. Trading any asset involves risk and could result in significant capital losses. Please, do your own research before acquiring stocks.

Links above from Koyfin are affiliate partners that provide Compounders Daily with financial support.

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