Alphabet is a massive cash flow machine with a subordinated balance: Analyst

Westpark Capital Analyst Curtis Shauger initiated the reporting alphabet (Nasdaq: Goog) on ​​Tuesday with a merchant and a price target of $ 21.

Alphabet reported the net turnover of the fourth quarter of $ 96.47 billion of $ 11.8%. GAAP EPS reached 2.15 US dollars and reached the consensus of USD $ 2.13.

Read too: Google’s new AI travel functions could improve the essential growth in search volume: analyst

The cloud turnover of 11.96 billion US dollars increased by 30%, but conveyed the consensus of $ 12.19 billion, with growth slowing down compared to the third quarter. The operating profit achieved 2.15 billion US dollars (18% margin) and beat the estimate of 1.9 billion US dollars, but the sales to track the Miss Miss via Alphabet, AWS and Azure.

The search represents one of the actual supply companies of the Internet economy, and Alphabet has professionally dominated the sector for almost twenty -five years.

The company has introduced this enviable position into numerous other growth areas, in particular video streaming (YouTube) and Infrastructure-as-A-Service (Google Cloud platform). Alphabet is a massive cash flow machine with a subordinate balance.

With EBITDA margins of 35 to 40%, the Alphabet 2024 ended over $ 70 billion to Free Cashflow and collected a net cash credit of ~ $ 85 billion. Shauger noticed that alphabet is well positioned to pursue aspiring growth areas, especially AI.

The slowdown of growth at GCP has led to considering the trajectory of this critical segment.

After GCP accelerated 23% in the next quarters in the third quarter of 2023 and reached 30% in the fourth quarter of 2024 in the third quarter of 2024. Despite the information on the demand, Shauger’s supply surpassed that Shauger put this dent in the procurement in the concerns about the almost annoying traance of the strategy.

Although Alphabet offers relatively few instructions in the fourth quarter, it announced the initial 2025 CAP-Ex Guide of $ 75 billion, which was 35% compared to 2024 and 150% compared to 2023.

Shauger explained this that some investors had taken care of with the slow GCP. The upcoming legal procedure could prove to be crucial.

After the decision in mid -2024, the alphabet had retained an illegal monopoly in the search.

Shauger found that the process specified for April this year could give investors a certain amount of the effects of the company and its shares.

Shauger predicted sales of $ 90.23 billion in the first quarter and GAAP EPS of USD 2.06.