The Internet is expected to play a major role in the global economic recovery and growth thereafter, given the rapid tech integration in almost every industry. Furthermore, the advent of 5G technology is expected to boost the industry even more with much higher connectivity speed.
A continuation of remote education and work, even as the COVID-19 pandemic abates, is increasing the amount of time spent by people on internet activities. Because organizations are expected to continue with remote working arrangements due to benefits it offers, such as high productivity and employee satisfaction, the internet industry is expected to witness steady and growing demand for the foreseeable future. Indeed, the global internet services market is expected to grow at a 12.2% CAGR to hit $492.15 billion by 2025.
Considering the industry’s growth prospects, we believe top performing companies Alphabet Inc. (GOOGL – Get Rating), Facebook, Inc. (FB – Get Rating), J2 Global, Inc. (JCOM – Get Rating), and Shutterstock, Inc. (SSTK – Get Rating) should deliver significant returns in the coming months.
GOOGL is one of the world’s biggest technology companies and is ranked #9 in the Fortune 500 list. It operates through three segments—Google Services, Google Cloud, and Other Bets.
On May 4, GOOGL signed a 10-year agreement with AES Corporation. Under the agreement, AES will supply electricity to power GOOGL’s data centers with 24/7 carbon free energy. This agreement demonstrates GOOGL’s commitment to sustainable growth. The company aims to operate on 100% carbon free energy by 2030.
GOOGL’s revenues increased 34.4% year-over-year to $55.31 billion in its fiscal first quarter, ended March 31. Its income from operations grew 106.1% from its year-ago value to $16.44 billion, while its net income improved 162.3% year-over-year to $17.93 billion. The company’s has EPS increased 166.4% year-over-year to $26.29.
Analysts expect GOOGL’s revenues to increase 46.3% year-over-year to $56.02 billion in its fiscal second quarter, ending June 2021. A $19.21 consensus EPS estimate for the current quarter indicates an 89.6% rise from the same period last year. Also, GOOGL surpassed the Street’s EPS estimates in each of the trailing four quarters.
Shares of GOOGL have gained 70% over the past year. GOOGL has gained 41.3% over the past six months to close yesterday’s trading session at $2,450.17.
It is no surprise that GOOGL has an overall B rating, which equates to Buy in our proprietary POWR Ratings system. The POWR Ratings are calculated considering 118 different factors, with each factor weighted to an optimal degree.
The stock also has an A grade for Sentiment, and a B grade for Quality. Among the 71 stocks in the Internet industry, GOOGL is ranked #2. To see additional GOOGL Ratings for Growth, Value, Stability, and Momentum, click here.
FB develops products that enable people to connect with friends and family over a global network. The company’s product line includes some of the most widely used apps, including Facebook, Instagram, Messenger, WhatsApp and Oculus.
FB’s total revenues increased 48% year-over-year to $26.17 billion in its fiscal first quarter, ended March 31. Its income from operations grew 93% from its year-ago value to $11.38 billion, while its net income improved 94% year-over-year to $9.50 billion. The company’s EPS increased 93% year-over-year to $3.30.
The Street expects FB’s revenues to increase 59.9% year-over-year to $27.82 billion in the current quarter, ending June 30, 2021. A $3.02 consensus EPS estimate for the current quarter indicates a 67.8% rise from the same period last year. FB has an impressive earnings surprise history also. It beat the consensus EPS estimates in each of the trailing four quarters. Shares of FB have…
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