2020-04-30 • Updated
Alphabet presented its Q1’2020 results on Tuesday, and they proved to be not that bad. In fact, they were not bad at all, especially given the virus damage circumstances. Below are some of them.
Source: Alphabet Investor Relations
So an increase in revenues 13% in the first quarter of 2020 stands against 17% in the same for 2019 year over year. Bad, but not that bad. Could have been much worse – and that’s exactly what the market was expecting. So Google did better than the forecast even falling below the normal expansion trajectory. But the strong part comes next.
Source: Alphabet Investor Relations
Google Cloud and YouTube ads did really well. These are the core engine for Google’s performance, and these did not fail. Expansion in Cloud and YouTube service was the main reasons why investors were fairly pleased with the results. Consequently, the stock price surged.
Before the webcast, the share price was at $1,232, coming to test April’s lows. Observers were not expecting much from the results – that’s why that made so much contrast to the positive performance of the company. Upon the release, the stock jumped to $1,332 making a 8% leap. So is it a buy now?
Even the presenters of the results including Sundar Pichai himself hinted that the second quarter of 2020 will be much tougher and gave other signs that there is no 100% certainty about sustainability of the numbers they brought. However, the fundamentals still say that Google is a good bet – primarily because the advertising revenue doesn’t seem to be damaged that much by the virus. And as long as it stay the core source of the income for the company, there should be no strategic obstacle for Google to keep growing.
China has issued new oil product export quotas to allow oil companies to send surplus barrels overseas, particularly Sinopec, which has the highest volume among quota holders. While the exact quota volume remains undisclosed, oil companies are forecasted to export approximately 3.5 million metric tons of clean oil products in September, a 10% increase from August.
Thanks to the incredible advancements in horizontal drilling and fracking technology, the United States has experienced a mind-blowing shale revolution. They've become the heavyweight champion of crude oil production, leaving Saudi Arabia and Russia in the dust. They even turned the tables and became net exporters of refined petroleum products in 2011.
Oil prices rebounded slightly on Friday but are still expected to show losses for the week due to concerns about slowing growth in the US and China. US crude futures rose 2.7% to $70.41 per barrel, while the Brent contract increased by 2.5% to $74.33 per barrel.
The past several weeks have been a real triumph for the bulls in the oil market. The Brent spot price grew by 8.5% during the last month.
Gold prices are rising for three consecutive days ahead of the Federal Reserve (Fed) interest rate decision, which is expected to remain unchanged due to declining inflation and a positive economic outlook. Investors are keen on the Fed's interest rate guidance, fearing a hawkish stance that could trigger market risk aversion.
Amid concerns of a Chinese economic slowdown, reports of declining investment often overlook China's efficient investment strategy in emerging sectors for long-term growth. China has taken measures to stabilize foreign and private sector investments, like reducing the reserve requirement ratio to boost investor confidence.
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