Alphabet – High Conviction Buy

Alphabet is a current holding in our US S&P100 model portfolio.

Shares of Alphabet rose after its second-quarter earnings announcement with earnings and revenue beating market expectations.

The strong earnings came from higher ad sales and growth at its cloud unit.  Google reported advertising revenue of $32.6 Bn for the second quarter, compared to $28.09 Bn during the second quarter last year.

Revenue came in at $38.94 Bn up 19% from last year and earnings per share were $14.21, up 21%.

Alphabet said its board of directors approved a re-purchase of up to an additional $25 Bn of its Class C capital stock.

Alphabet is on our high conviction buy list, underpinned by strong revenue growth and the large scale share buyback.