Alphabet‘s (GOOGL – Free Report) first-quarter 2022 results, which are scheduled to be released on Apr 26, are likely to reflect strength in its cloud arm, Google Cloud.
Google Cloud has turned out to be the key catalyst behind the company’s growth on the back of its strengthening cloud service offerings.
The company’s cloud offerings include Google Cloud Platform and Google Workspace, which are continuously gaining momentum in the booming cloud computing market. Google’s growing investments in infrastructure, security, data management, analytics and AI remain major positives.
Alphabet has been persistently witnessing strong growth in revenue generated from the underlined segment, which derives revenue from fees collected for Google Cloud Platform services and Google Workspace collaboration tools.
Revenues from the segment were $ 5.5 billion in fourth-quarter 2021. The figure accounted for 7.4% of total revenues and exhibited year-over-year growth of 44.6%.
For first-quarter 2022, the Zacks Consensus Estimate for Google Cloud revenues is pegged at $ 5.7 billion, suggesting growth of 41% from the prior-year quarter’s reported figure.
Click here to know how the company’s overall first-quarter performance is likely to have been.
Zacks Rank & Stocks to Consider
Currently, Alphabet has a Zacks Rank # 3 (Hold).
Investors interested in the broader technology sector can consider stocks like Jack Henry & Associates (JKHY – Free Report), Broadcom (AVGO – Free Report) and Analog Devices (ADI – Free Report), each carrying a Zacks Rank # 2 (Buy). You can see the complete list of today’s Zacks # 1 Rank (Strong Buy) stocks here.
Jack Henry & Associates has gained 16.3% in the past year. The long-term earnings growth rate for JKHY is currently projected at 17%.
Broadcom has gained 31.4% in the past year. AVGO’s long-term earnings growth rate is currently projected at 14.5%.
Analog Devices has gained 3.9% in the past year. The long-term earnings growth rate for ADI is currently projected at 12.3%.