Alphabet: A Cash Flow Machine With A Fortress Balance Sheet

Marel
6.09K Followers

Summary

  • Alphabet recently announced solid Q2 2022 results, with double-digit revenue growth.
  • Despite volatile markets, Alphabet is demonstrating tremendous resilience on two important metrics: operating cash flow and balance sheet strength.
  • Alphabet is flirting with the $100 billion mark in terms of annual operating cash flow and its cash position, including marketable securities, is a whopping $125 billion.
  • Compared to peers, Alphabet has the strongest balance sheet and is producing levels of operating cash flow similar to Apple and Microsoft.
  • However, Alphabet's market cap is $1 trillion lower than Apple's and $600 less compared to Microsoft's. This anomaly cannot last forever. Alphabet has substantial upside potential.

Google Announces EUR 1 Billion Investment In Germany, Including Renewable Energies

Sean Gallup

Just a few years ago, we were in the race for which company will first reach a trillion-dollar market cap. Now we have multiple trillion-dollar companies. It is no surprise that the trillion-dollar club is dominated by U.S. tech giants of the

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of GOOG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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