Comfortable quarterly beat, 1st time as ABC

I am an Alphabet, not a Googler. Surely not at the headquarters, people who work for Google, will still work for Google and are by extension Googlers. Not Alphabeters. The reason for the renaming and reorganisation of the business was essentially to take focus away from the business being a one pony trick, purely advertising and to focus on all of their other businesses including robotics, life sciences business, just a separation and reporting differently, that is all.


Doing the same, only more transparent on spend in those other businesses. The new reporting entity, Alphabet reported in the same old way Third Quarter 2015 Results after the market. The company included the first step towards maturity (some may not think so), a 5 billion Dollar share buy back. Commencing in this quarter. Also commencing this quarter will be the segregation and more insight into the business as a whole, the true Alphabet.

Constant currency revenue growth of 21 percent was registered, in Dollars a less (still very pleasing) 13 percent growth year-over-year to 18.7 billion Dollars. GAAP diluted EPS clocked 5.73 Dollars, non-GAAP diluted EPS was a buck and a dime higher to 7.35 Dollars. Advertising revenues still represent 16.781 billion of the groups 18.675 billion Dollars, with paid clicks increasing 7 percent quoter-on-quarter and 35 percent year-on-year across the Google Websites. Cost control was also something that investors had gotten a little irritated with (well done to new CFO Ruth Porat), as a percentage of operating revenues costs were steady year-on-year at 37 percent. It is not as if the company has stopped hiring, they added nearly 8500 employees over the year, to be an organisation that employs just less than 60 thousand people. So whilst farm jobs have been decimated over 150 years, no worries, there are new companies doing new things!


The group has enormous resources, the buyback represents a little over 5 billion Dollars (actually the real number is 5,099,019,513.59 Dollars, which is the square root of 26, which is how many letter there are in the Alphabet) and is a dip into the nearly 73 billion Dollar cash pile. Mr. Market is cheering the Alphabet results, as easy as ABC and not XYZ. Zee and See rhyme in American English, not so much in South African English. Pre (and post) market the stock is trading at 742.8 Dollars, which represents a jump of over nine percent on the closing price (which itself was 1.39 percent higher). Mr. Market approves, remembering that clearly was not the case 18 months ago, when people were calling the company mature and slowing. And to think that the stock traded below 500 Dollar earlier in the year. We continue to accumulate.