Alphabet Announces Fourth Quarter and Fiscal Year 2021 Results

Summary: Full year 2021 revenue $257B, 41% year on year growth. Net income $76B, up from $40B yoy.<p>Quarterly: Q4 of 2021 they made $75B revenue, most of it came from Google Search, $43B up from $31.9B in Q4 2020. Youtube $8.6B of ads, Google Network $9.3B from ads.<p>Google cloud did $5B revenue for the quarter, up from $3.8B in Q4 2020. It lost $890m this quarter compared to $1.2B Q4 2020. &quot;Other Services&quot; did $8.1B revenue and &quot;Other bets&quot; did $181B<p>They have ~$140B in cash and liquid investments.

Really amazing how much money they keep squeezing out search<p>But it&#x27;s basically impossible to escape the ads on it these days, so it&#x27;s not surprising.

I’m wondering if growth is just synthetic at this point. They can just add more ads regardless of user growth.<p>There has been a noticeable increase in ads across all their products.

To put Alphabets revenue this quarter ($75 billion) in perspective:<p>Microsoft: $51.7 billion<p>Apple: $123.9 billion.

&gt;adjusted the estimated useful life of our servers from three years to four years and the estimated useful life of certain network equipment from three years to five years<p>Another sign of the slowing advancement in CPU power&#x2F;performance?

In terms of investments, I like Google the most out of the monopoly techs. Microsoft is my least favorite because they’re just a fund of loosely related technologies at this point.

A 20:1 stock split as well.

This is the closest thing to investing in Renaissance Technologies. It&#x27;s too bad there is not a way to get 2-3x leverage version of google. The CAGR since its IPO in 2004 is the same as Renaissance too. Rather than executing millions of trades, the profit is from millions of clicks. Like renaissance , massive statistical analysis is involved, such as tracking click patterns and optimizing the ads.<p>There is no limit to how high this will go. More and more economic activity is being funneled into these dozen or so mega-tech companies, which is how they are able to grow annual revenues at 20-40%&#x2F;year despite 3% GDP growth.

The pandemic seems to have been very profitable for big tech, for both money and power.

It&#x27;s mind boggling to me that Google is still losing money on GCP. It&#x27;s been years. And AWS and Azure are minting money. Any reason why?

Google Cloud revenue is only up 30% YoY, which seems really low considering the marketing and the focus on it (and the growth of the competitors).

Please mark as [pdf]

Man, Google’s poor search results sure do pay well &#x2F;s.<p>I wonder if Google will make any big acquisitions this year