2021 analysts estimates were $60 which I thought was low. I forecasted $80 and now Google is on a $100+ EPS run rate for the year.
At 30 times current year earnings, I've assigned a $3,000 per share price target.
Highlights
Youtube: 6.5 billion daily views as of March, up from 3.5 billion at the end of 2020. That's a lot of ad impressions, folks. They continue buildout of Youtube Premium.
Cloud & Workspace: Q1 revenue grew 46% year-over-year. Cloud lost $1B but is scaling towards the inflection point where it will be cash-flow accretive. Google is pedal down on growing this business. They are third behind Amazon and Microsoft but they should close the gap.
Cash Flow Operations: $19.3 billion.
Free Cash Flow: $13.3 billion in the quarter. $50.7 billion for the trailing twelve months.
Cash Position: $135 billion in cash and marketable securities.
Buybacks: Approved an additional $50 billion. Google continues to reduced outstanding shares
Venture Arm: $4.8 billion, which primarily reflects unrealized gains in the value of investments in equity securities. Several early and late stage investments in high growth opportunity companies. https://www.gv.com/portfolio/
Other Bets
Biotech: Calico and its partner, AbbVie, announced that it has entered clinical-stage programs for new drug therapies for cancer and neurodegenerative diseases, like ALS, Parkinson’s disease and traumatic brain injury.
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