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Google Advertising availability
Killexams : Google Advertising availability - BingNews Search results Killexams : Google Advertising availability - BingNews Killexams : Google Play Cracking Down On Intrusive Ads No result found, try new keyword!Google has outlined new rules that will cut down on the number of intrusive ads in its apps and allow you to skip others sooner. Tue, 02 Aug 2022 20:22:59 -0500 en-us text/html Killexams : Google Ads Editor & API Now Support Discovery Ads, Plus New Audience Insights

Google announced a bunch of new things for Google Discover Ads yesterday. They include that the Google Ads Editor and Google Ads API now support Discovery ads, there are new audience insights at the Discovery campaign level, and new support for images with text overlays.

(1) Google Ads Editor and Google Ads API now work with Discover Ads. Google wrote, "if you're looking for more tools to help you save time with your Discovery ads, Google Ads Editor and API are now available to help you manage your campaigns at scale."

(2) Audience insights at the campaign level for Discovery ads. Google said "To help you connect to your own ideal customer with Discovery ads, we're pleased to share that you can now use the Insights page to see which audience segments deliver the biggest impact for your business. Pair this with creative tips from asset reporting to help you drive deeper engagement, and when you're ready to unlock more opportunities, use optimized targeting to scale your reach to consumers who are likely to convert. "

(3) New support for images with text overlays. Google wrote, "To make the lift and shift of your assets and audiences more seamless and help you craft more successful ads, we've rebuilt our onboarding flow from the ground up. During ad creation you'll see more detailed asset guidance like prompts to add more aspect ratios or unique headlines, and you can now add image assets with text overlays to help you deliver even clearer calls-to-action."

Here is more from Ginny Marvin from Google on this:

Forum discussion at Twitter.

Thu, 04 Aug 2022 23:11:00 -0500 Barry Schwartz text/html
Killexams : Google: The Bottom Is In
Name sign above the entrance of Google offices in London, UK.

Alena Kravchenko

Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) announced its 2Q-22 earnings report two days ago, and while the stock rose as a result, the valuation is so low in comparison to Google's long-term potential that I have doubled my investment.

The post-earnings bounce also signals that the stock has bottomed and that market sentiment toward mega-cap corporations may alter in the future.

Google's cloud division is benefiting from strong demand and serves as a counterweight to the search/advertising division.

Even though Google's search platform is not growing as quickly as some may have hoped, the company is well capitalized and will weather the storm.

Google’s 2Q-22 Earnings And Sales Double-Missed

Google released its 2Q-22 earnings and sales figures two days ago and, sadly, failed to achieve the slightly higher earnings-per-share and sales projections.

Earnings per share fell by 6% in the second quarter, although revenues fell by a smaller margin. It was Google's second earnings shortfall in a row, despite fundamentally strong cloud performance.

Alphabet Q2 2022 earnings

Earnings Calls (Alphabet Inc)

While Google's advertising sales growth slowed (+12% YoY in 2Q-22), the results for the second quarter were still quite impressive.

Sales for the second quarter totaled $69.7 billion, representing a 13% YoY increase in a slow market. Currency fluctuations reduced Google's sales growth rate by 3.7 percentage points in the second quarter.

Google's 1Q-21 comparisons were extremely unfavorable. Google's advertising businesses benefited from increased advertiser expenditure in the prior quarter across all of Google's ad delivery services, including Google Search & other, YouTube, and Google Network. There were also widespread Covid-19 limitations in force at the time, limiting consumers' shopping alternatives.

For the time being, the majority of Google's sales are generated by Google search sites, YouTube properties, and the Google Network, which includes AdSense and Google Ad Manager.

Approximately 81% of Google's 2Q-22 sales come from its various advertising services, implying that a broad-scale decline in advertising spending will have a significant impact on Google. Cloud computing is one approach for Google to mitigate this risk.

Sales in Google's largest business, search, surged 14% YoY, but no business grew as steadily as cloud. Cloud revenues increased by 36% YoY, indicating that investors should place a greater emphasis on this section for future sales growth rather than Google's extremely profitable search business.

Cloud has the potential to become a true behemoth and cash cow for Google, with a growth rate roughly three times that of search. In the second quarter, sales were $6.3 billion, but the division is still not profitable for Google. This is expected to change once Google approaches critical mass and segment economics improve. Google Services generated a $22.3 billion operational profit for Google, and the business has been profitable for the corporation on a constant basis.

Google Operating Income

Operating Income (Alphabet Inc)

Google's profits for the fiscal quarter ended June 30, 2022 were $16.0 billion, or $1.22 per share, a 12% decrease YoY. Even if profits fell $2.5 billion YoY due to slower growth and increased expenses, I find it difficult to blame Google given that $16.0 billion in profits is a pretty figure. The majority of this money will also be allocated to shareholders.

Alphabet Income Statement Q2 2022

Consolidated Statements Of Income (Alphabet Inc)

Going Toe-To-Toe With Amazon

Google is launching a new battleground with Amazon, the unchallenged leader in the eCommerce space. Google-owned YouTube is teaming up with Shopify to take on Amazon in the eCommerce industry while also tapping into the massive creator community that uses YouTube as a primary marketing tool.

Why not take a share of creators' revenues directly through the YouTube platform instead of merely running paid ads on YouTube? The concept is brilliant, and I covered the collaboration in my earlier piece, 'Google Stock Is a Steal'.

Why Stock Buybacks Are So Crucial For Alphabet

I'm increasing my stake in Google because I expect management to increase stock buybacks. Google may divide its huge wealth by buying back stock in the market and then retiring it.

Alphabet's board of directors authorized a $70 billion buyback of Class A and Class C shares in April. At the end of the second quarter, $58.9 billion remained available for share repurchases. Google could repurchase 513 million shares at the current price of $114.81, representing approximately 4% of outstanding shares. Alphabet had approximately 13.0 billion shares outstanding at the end of 2Q-22, after adjusting for the 20-for-one stock split.

Alphabet repurchased 132.8 million Class A and Class C shares for a total of $15.2 billion in 1Q-21. In 2022, the repurchases are expected to total 231.1 million shares and $28.5 billion.

Google Stock Buybacks

Stock Buybacks (Alphabet Inc)

Google has historically been very shareholder friendly, which was a key criterion for me to double down on Google following the post-earnings rally.

Knowing that management is monitoring my investment and repurchasing shares allows me to sleep soundly at night. Given its track record of stock repurchases, the company expects to repurchase a significant amount of stock each quarter.

Alphabet stock price and buyback
GOOG data by YCharts

A Recession Is Here

If you haven't heard, the United States appears to be in a recession. The U.S. economy shrank by 0.9% in the second quarter, marking the second consecutive quarter of negative economic growth.

What better company to own than one whose management has demonstrated that it buys back stock in the market on a regular basis, especially when the price is low?

The Bottom Is In

I believe Google stock has reached its bottom, and $105 is a strong support level for GOOG, and the stock has bounced off it several times. Though the Relative Strength Index and the MACD do not indicate that GOOG is oversold, I believe the setup here is promising.

Despite a double-miss, 2Q'22 results were well-received in the market and jolted higher on strong cloud execution. If GOOG can break through the $120 resistance level, we could see a quick return to $145-150.

GOOG Share Price

GOOG Share Price (Stockcharts)

Why Google Could See A Lower Valuation

Google is in the process of expanding into new business areas, such as the creator/eCommerce market. Google is diversifying its business in the process, making it less reliant on the overarching advertising segment, which is cyclical and unpredictable even for a company with Alphabet's clout.

A recession is likely to have a significant impact on the advertising market, posing a risk to Google's core businesses. Right now, I see a recession and a corresponding drop in advertising sales as the defining risk in the Google trade.

My Conclusion

I doubled my investment in Google after the company released its 2Q-22 earnings report because the company's push into the creator community and aggressive use of cash for stock buybacks show that management is a good steward of investor capital.

In a recession, Google's transition away from its dominant advertising business creates upside while limiting downside.

Last but not least, I believe GOOG has bottomed and that the market will begin to reward Alphabet for its cloud growth and generous stock buybacks.

Sun, 31 Jul 2022 02:41:00 -0500 en text/html
Killexams : Google releases simple, centralized tag solution

Google has just announced the Google tag – a simple, centralized, reusable tag that’s built to Boost data quality and adopt new features without having to modify and install more code. The Google tag is an upgrade and rebrand of the global site tag.

What is the Google tag. The new Google tag is a single, reusable tag built on top of your existing gtag.js implementations. Google says the tag will roll out in the next week and should be placed on all pages of your website. They claim the tag will “help you confidently measure impact and preserve user trust.”

New codeless features. According to Christophe Combette, Director, Ads Measurement Products, Google, the new site tag will have more codeless features such as analyzing events, managing the tags from one central screen, and using a single line of code to enable more products, accounts and features from the interface. There will also be more privacy-safe measurement capabilities, better data quality, and increased ease of use. Users will also be able to use their existing Google tag installation when setting up another Google product or account or creating new conversion actions, instead of configuring additional code each time.

Will the global site tag be sunset. While Combette claims that the global site tag branding will be sunset, the tag itself will not. Users with the global site tag installed will continue to operate as normal. The global site tag will continue to work and tag implementations will not change. The global site tag will have new capabilities if you want to adjust settings or create new accounts.

Advertisers with multiple instances of gtag.js can now combine those tags and centrally manage their settings in the Google tag screens in Google Ads and Google Analytics. Since it’ll be easier to set up sitewide tagging and combine or reuse tags, you can easily increase the number of tagged pages with consistent configuration. This helps Boost measurement, leading to better-quality customer insights. You can also now manage user access to your tag settings across products in one dedicated place, giving you more control over who has access to critical measurement settings.

What products will have the new Google tag. Google says, “The Google tag already works with many Google products such as Google Ads, Campaign Manager, Display & Video 360, Search Ads 360, Google Analytics, and more. The new codeless tagging capabilities of the Google tag will initially be available in Google Ads and Google Analytics, and will expand to other products over time.”

What Google says. You can read about the new Google tag, its capabilities, and best practices here.

Why we care. The release of a new tag may be confusing for advertisers. It’s unclear whether advertisers who are using the global site tag should leave theirs installed, or replace it with the new Google tag. It’s also unclear on what happens if users decide not to install the new Google tag. If the global site tag will feature the new capabilities, what incentive do advertisers have to use the new one? However, the new Google tag seems more intuitive and easier to manage. If Google can make the transition smooth and uncomplicated, then it could be a win.

What is tagging and why is it so important?

Understanding the effectiveness of online advertising and on-site behavior with digital marketing and measurement tools requires advertisers to measure various interactions on their websites. It is the foundation of measurement and also is essential in enabling businesses to implement privacy-centric measurement tools, such as Consent Mode or the Privacy Sandbox in the coming months. Tagging is critical to an enduring and effective measurement strategy.

Tagging is the underlying code that powers the sitewide measurement in Google Ads and Google Analytics, so advertisers, businesses, and marketers can better understand customer activity and glean actionable insights. To get a bit more technical, tags are the code snippets that make this online measurement possible. Tagging typically involves a marketer or developer adding a base or global tag for each measurement tool that they use to all pages of their website, as well as sometimes adding event tags to measure key interactions such as submitting a contact form or completing an online purchase.

What is the new Google tag?

Google tag is an expansion and rebrand of the existing global site tag. In a time where measurement is more essential than ever, it’s critical that businesses are able to set up a strong foundation. To help advertisers, marketers, and businesses continue to measure conversions while adapting to ecosystem changes and respecting users’ privacy, it’s essential for them to have high quality, site-wide tagging. 

Google tag is – at its core – one tag. For example, if an advertiser has two Google Ads accounts, they only need to tag once, where previously multiple tags would have been needed. This works the same for an advertiser who uses both Google Ads and Google Analytics.

The new Google tag includes codeless features and experiences for customers that will allow them to take advantage of more privacy-safe measurement capabilities, better data quality, and increased ease of use. 

Why is Google tag replacing the global site tag?

The Google tag is an evolution of the global site tag and built upon its existing capabilities. It is a more efficient and seamless experience for customers and it will enable businesses, both big and small, to more effectively manage tags and more easily leverage privacy-safe measurement solutions. 

Is there a deprecation date for the global site tag? 

Advertisers, marketers and businesses who are currently using the global site tag, will not need to make any changes. While the global site tag branding will be sunset, tag implementations do not change and existing tag implementations will continue to work. Those with global site tag will now have new capabilities available to them should they need to adjust tag settings, create new accounts within existing products, or begin using new products (i.e. Google Ads or Google Analytics).

How is the new Google tag different from the current global site tag?

The new Google tag will incorporate more codeless features where previously in-page code changes may have been required. For example, prior to Google tag, each event you wanted to understand would need to be set up through in-page coding – something that takes both expertise and bandwidth. With the new codeless capabilities, advertisers and businesses can do that all through the UI.

Additionally, Google Analytics and Google Ads customers will be able to combine and manage their tags from one central location in newly introduced “Google tag” screens. For advertisers without deep technical knowledge (especially those with multiple accounts or using multiple Google products), this makes it easier and faster to manage your tags and improves consistency. 

For example, prior to the Google tag, when getting started with Google Analytics or Google Ads, an advertiser was instructed to install the global site tag (gtag.js). If they wanted to set up a second product or account, they would be required to add an additional line of code to the gtag.js implementation to begin measuring with that second product. With the new Google tag experience, customers will be able to use a single installation of gtag.js to enable more products, accounts and features from the product interface.

Is the implementation of the new tag the same, or how will it change?

Generally, the first implementation of the Google tag on a website is the same as with the global site tag. The key difference is that the tag now only needs to be installed once. Setting up a second or third product or account will not require additional tag implementation. Additionally, we’re working with some of the top Content Management Systems and web platforms to make simpler integrations available – so, if an advertiser or business uses a popular CMS, they may not need to implement any code at all.

Will the Google tag be used for all Google products, or just Google Ads? Or, if not all products, which Google products can the tag be used for.

The Google tag already works with many Google products such as Google Ads, Campaign Manager, Display & Video 360, Search Ads 360, Google Analytics, and more. The new codeless tagging capabilities of the Google tag will initially be available in Google Ads and Google Analytics, and will expand to other products over time.

The how it works (from the same support documentation) – what’s different and does anything stay the same. 

When it comes to what’s different, it’s all about simplification, ease of use, flexibility, and improved features. Customers who are currently set up and are not looking to make any expansions, will not see any changes – though more features and flexibility will be immediately available to them. 

For new customers, or customers who are looking to set up a second product or account, they will now be able to use the one existing tag to expand, eliminating a number of steps along the way.

What are best practices for marketers using the Google tag?

First and foremost, the Google tag should be installed on all pages of an advertiser, business, or marketer’s site. By doing this, it will ensure that they get the best possible measurement from their Google tag and will enable them to adapt new features as they become available. 

Next, if you already have multiple tags installed on your site, consider combining them so that you can manage settings centrally and take advantage of combined page coverage. 

Organizations with custom-built websites should think about working with developers to implement events and parameters for key user actions. While more and more measurement will be possible codelessly, working with developers to instrument important events and data that would be otherwise difficult to capture codelessly (such as ecommerce data from custom websites) can help achieve richer measurement. 

Are there any things to watch out for? (EG configuration? any issues if you have both the global site tag and new Google tag in your code at the same time? Could that cause issues)

The Google tag will make the tagging experience more seamless for customers. As previously mentioned, customers with multiple existing tags should consider combining them in the new Google tag screen in Google Ads and Analytics to centralize management of settings. 

After two Google tags have been combined, for example, using an ID from either original tag will work to load the combined tag. When two instances of a combined tag run on a given page, only the first on-page configuration will take effect. Customers who use many on-page configurations in their global site tags today should be thoughtful about updating tagging settings when combining tags. The new Google tag screens will guide users through these actions.

Is it compatible with Google Tag Manager?

Customers who use Google Tag Manager should not need to make any changes today. We will have more to share about how these Google tag capabilities work with Google Tag Manager and how customers with the Google tag can upgrade to Google Tag Manager in the coming months.

Will businesses/marketers get any new types of data as a result of this change? 

The Google tag will make it easier for businesses/marketers to measure various data and interactions on their websites, but the types of data they get will be consistent with what’s possible today.

New on Search Engine Land

About The Author

Nicole Farley is an editor for Search Engine Land covering all things PPC. In addition to being a Marine Corps veteran, she has an extensive background in digital marketing, an MBA and a penchant for true crime, podcasts, travel, and snacks.

Tue, 02 Aug 2022 04:00:00 -0500 Nicole Farley en text/html
Killexams : Google's Post-Earnings Rally Signals The Bottom Is In
Google Announces EUR 1 Billion Investment In Germany, Including Renewable Energies

Sean Gallup

It has been a tough first six months for big tech, as it grapples with one of the largest market selloffs in history amid brewing macroeconomic uncertainties. The three months ended June 30th was a big quarter for Alphabet’s Google (GOOG / NASDAQ:GOOGL), as it preemptively prepares for an anticipated slowdown in ad spending – a core driver of its revenues – in the near-term, as well as other cost headwinds such as wage increases and FX challenges amid heightened macro challenges. The company also staged a 20-for-1 stock split earlier this month, which garnered a surge in retail interest, though its shares are still trading about 4% down since.

Google has lost more than a quarter of its market value this year, despite its limited exposure to raw material supply constraints, which accounts for the bulk of supply-driven inflationary pressures and bottom-line headwinds under today’s economy. Yet, wage inflation and broad-based economic uncertainties have turned the company cautious when it comes to hiring and cost efficiency management in recent weeks, raising investors’ concerns on its near-term growth and profitability outlook.

But despite not being “immune to economic headwinds” per CEO Sundar Pichai in his latest memo to employees regarding the company’s recent decision to slow hiring, Google’s Search and Other sales beat reported Tuesday evening underscores the business’ resilience still. Market response was also largely positive, despite a consolidated revenue and earnings miss. The company’s robust results in its core advertising business took the center stage on Tuesday evening’s earnings release, and assuaged investors’ concerns by defying the pronounced challenges felt by ad-reliant peers like Snap (SNAP) and Twitter (TWTR).

While a slowdown in ad spending is imminent due to the industry’s cyclical nature, Google’s recent Q2 results continue to support that its dominance in the online search market and broader digital moat remain competitive advantages that will help it weather the near-term market storm better than peers. Meanwhile, Google Cloud continues to gain market share slowly, but surely, thanks to a robust demand environment buoyed by secular trends that are defying risks of the looming economic downturn. While FX risks remain the lone piece that Google has no direct control / influence over, the company continues to diligently manage its operational efficiency to better align its near-term spending and investments with its longer-term growth goals.

Considering the continued resilience demonstrated through Google’s core Search ads business, and conservative commentary on 2H outlook that offers a realistic expectation of potential near-term macro headwinds, the company reinforces investors’ expectations on its ability in properly managing and overcoming uncertain times with strength.

Google’s shares currently trade at a forward EV/sales and price/earnings multiple of 4.4x and 19.1x, respectively. That is a discount of about 12% and 14% compared to the internet mean of 5x and 22.2x (ex-Twitter’s 66.6x forward P/E due to skew) on peers with a similar growth profile, respectively, and discount of ~20% compared to the broader market (Nasdaq 100 forward P/E ~25x). With Google’s long-term growth trajectory backed by a robust and diverse digital moat, strong balance sheet, and favourable secular tailwinds as demonstrated by its Q2 resilience against looming macro challenges, the stock remains an attractive long-term investment at current levels.

Zeroing-In on Ads

Investors’ Concern: Snap’s weaker-than-expected Q2 results literally snapped the market’s rally last week, wiping out more than $130 billion in market value across its peer group as fears spread that digital advertising may be headed for a steep downturn. Similar weakness reported by Twitter had only elevated investors’ angst over the performance of online advertising bellwethers Google and Meta Platforms (META) ahead of a second half economic outlook that is becoming increasingly uncertain.

Forecasts for total global advertising spending this year have also been on a rolling decline in response to the economy's struggles with keeping inflation in check given extraordinary circumstances that include a protracted pandemic and Russia's invasion of Ukraine. Leading media intelligence MAGNA Global has trimmed its prediction on global ad spending growth this year from 12% to 9% amid growing risks of a structural economic downturn later this year. This compares to global ad spending growth of +23% year-on-year in 2021 (U.S. +26% y/y), buoyed by a brief stint of post-pandemic economic recovery.

The above forecast on near-term softening in ad spending is further corroborated by observations of broad-based reductions in ad spending across small- and mid-sized business (“SMB”) ad agencies. The cohort of marketing, consulting and web design experts have already put 25% to 40% of their advertising projects on hold ahead of near-term economic uncertainties.

Google Results: Although the odds were stacked against Google, its Q2 Search and Other revenue beat proved otherwise. As advertisers regroup on marketing budgets amid economic uncertainties ahead, ad dollars will continue to be spent conservatively, while favouring distribution channels that can drive promising conversion rates. This is further corroborated by Google’s Q2 Search and Other revenue beat, underscoring the competitive advantage of the company’s leading market share of more than 90% in global online search. The segment reported revenues of $40.7 billion in the second quarter, representing y/y growth of 14% and sequential growth of 3%, beating average consensus estimates of $40.3 billion.

Looking ahead, management has cautioned a tough prior year compare and broad-based ad spending weakness amid near-term economic headwinds as a downside risk. While advertising is a cyclical sector that tends to contract amid an economic downturn, there has not been any structural downward shift observed in related spending across the advertising industry, especially in online ads. In other words, the near-term slowdown in ad spending will only be temporary in the digital sector, though more structurally pronounced in legacy outlets like linear TV.

The increasing use of technology has actually encouraged greater online ad spending in recent years. The global digital advertising market is expected to grow at a compounded annual growth rate (“CAGR”) of 21.6% over the next five years and drive an anticipated addressable market size of close to $1 trillion by mid-decade, making strong tailwinds for Google’s core advertising business. Specifically, video streaming platforms are now home to about 23% of total ad spend in the U.S., and the figure is expected to expand further as digital advertising’s more than 60% share of the broader advertising market today is projected to grow at an 11% CAGR through 2030.

This accordingly makes strong long-term growth trends for YouTube, which makes it one of the world’s most frequented websites after Google Search, and now accounts for close to 7% of total TV viewership (or 20% of video streaming viewership) in the U.S. Paired with Google’s dominant market share in online search (more than 90%), the company has become a preferred choice for digital ad placements as advertisers and merchants look to maximize conversion from their investment dollars spent amid near-term economic uncertainties.

Implications: Google’s advertising strength continues to demonstrate its ability to remain more resilient than social media peers like Snap, Twitter, and even Meta Platforms. With a portfolio of the world’s most-used digital platforms under its belt, logging more than 5 billion visits per day on its search engine alone, Google continues to lead the digital advertising industry with more than a third of related market share.

Google’s expansion of YouTube in recent years with subscription-based services like YouTube Premium and YouTube TV live streaming has also allowed it to better monetize on growing demand for ad distribution through video platforms as mentioned in earlier sections. Today, YouTube TV’s total subscription base (including non-paying trials) have exceeded five million, surpassing the reach of Disney’s equivalent Hulu + Live TV’s subscription base of four million. The recent launch of YouTube Shorts also captures additional viewership stemming from one of the fastest rising trends in video streaming – short-form videos. YouTube Shorts currently garner more than 30 billion views on a daily basis, underscoring the rapid transition to video-based interactions over text or photos.

In order to better monetize the prowess of Google’s various ad distribution channels built over the years, the company has recently introduced “Performance Max”, an automated marketing solution that helps advertisers and merchants extend reach across all of its Search, YouTube video / Shorts, Display, Gmail, and Maps platforms based on user preferences. Taking into consideration advertisers’ and/or merchants’ specified conversion targets, Performance Max will automatically deliver ads within their respective inventories (i.e. photos, texts, videos) across Google’s various distribution channels and maximize conversion rates.

The new Performance Max advertising feature screams “value for money”, which is an important trait within a constrained economic environment. It also appeals to the "trillions of offline [SMB] retail dollars moving online over the much longer-term” by making the online advertising process easier to use and highly scalable, driving additional value to merchants and advertisers for every ad dollar spent.

While it may seem that Google’s vast reliance on ad revenues exposes it to significant downside risks in the near-term as ad spending imminently pares back due to the cyclical nature of the sector, the company’s market-leading position in digital ads actually makes a competitive advantage instead. Google’s extensive reach through Search and YouTube has turned it into the preferred digital ad distribution channel to ensure maximized conversion rates. The company’s limited exposure to adverse impacts from Apple’s (AAPL) recent privacy policy changes compared to peers engaged in app-based targeted ads is another plus to bolster its market share wins on limited ad dollars amid ballooning macro uncertainties in the near-term.

Fundamental and Valuation Analysis Update

The Alphabet stock’s post-market performance immediately after the release of the company’s second quarter results was largely positive, which is consistent with its resilience against broad-based softening in ad demand observed across ad-reliant peers last week. Continued market share gains observed in Alphabet’s Google Cloud business is also a positive showing to support a favourable trajectory towards profitability over the longer-term.

Adjusting our previous forecast for Google’s actual second quarter performance, as well as management’s commentary for the third quarter, we are projecting total revenues of $300.7 billion (+17% y/y) by year-end. The assumption takes into consideration recent developments regarding Google’s advertising business as discussed in the foregoing analysis, as well as continued expansion of its Google Cloud segment in terms of both product offerings and geographic footprint as discussed during the earnings call.

Google Revenue Forecast

Alphabet Revenue Forecast (Author)

Specifically, advertising revenues are expected to remain resilient amid broad-based slowdown in the industry, reaching $242.8 billion by the end of the year (+16% y/y). We expect a back-end weighted year in ad spending buoyed by seasonality (i.e. back-to-school and holiday season, as well as elections this year), partially offset by ongoing economic uncertainties in the near-term as warned by management and as discussed in earlier sections. The projection also reflects Google Search's continued market dominance and YouTube's viewership growth momentum, which is set to help the company claw back on some of the near-term advertising industry headwinds.

Meanwhile, Google’s ongoing efforts in expanding the availability of its cloud services, alongside a commitment to innovation, such as the creation of industry-specific solutions (e.g. Manufacturing Data Engine and Manufacturing Connect), also reinforces its long-term market share gains and supports acceleration in coming years. Google Cloud’s continued growth trajectory is further corroborated by resilient demand despite broad-based macro challenges – building a digital fabric remains a critical mission for the commercial sector in order to ensure "improved productivity in the inflationary environment", meaning IT spending on migrating workloads to the cloud and other digital transformation projects will remain strong. Based on the segment’s strong double-digit growth observed in the first half of the year, as well as favourable secular trends ahead, our base case forecasts projects Google Cloud sales to reach $27.8 billion by year-end (+45% y/y).

The projected cost structure for Google over the forecast period remains largely consistent with assumptions applied in our previous coverage as well. As a result, operating margins are expected to remain in the 30% range over the next five years to reflect ongoing cost pressures from Google Cloud investments, as well as near-term labour cost headwinds, then further expand over the longer-term as cloud opportunities continue to scale. Coupled with other nominal non-operating income and expenses, the company is forecast to generate consolidated net income of $73.3 billion in the current year (-4% y/y).

Alphabet Financial Forecast

Alphabet Financial Forecast (Author)

Drawing on the above fundamental analysis, with additional consideration of the stock’s recent 20-for-1 split, our 12-month price target for the Google stock has been revised to $147. This represents upside potential of close to 35% based on the shares’ last traded price of $110 apiece in post-earnings late-trading July 26th.

GOOG Valuation Analysis

GOOG Valuation Analysis (Author)

The price target is derived from a discounted cash flow (“DCF”) analysis in conjunction with the financial projections over the five-year forecast period discussed in the earlier section. The analysis applies a WACC of 9.8% to discount Google’s projected free cash flows, which is consistent with its robust net cash position of $110 billion (including marketable securities) as of period end. Our valuation analysis also assumes an exit multiple of 12.7x, which in our view, better reflects Google’s industry-leading market share in digital ads, as well as its long-term growth trajectory compared to industry peers with a similar growth profile. The exit multiple applied is also consistent with a perpetual growth rate of about 3%, in line with longer-term GDP expansion across Google’s core markets.

GOOG Valuation Analysis

GOOG Valuation Analysis (Author)


Is the Alphabet Stock a Buy After Q2 Earnings?

As mentioned in the beginning of the article, Google is currently trading at a discount to both its peer group, as well as the broader market, despite its best-in-class growth prospects and strong balance sheet. The company’s latest earnings has also proven its business’ resilience against near-term industry headwinds, which corroborates expectations for continued outperformance against peers.

We believe the ongoing market selloff that has been induced by mounting macro headwinds spanning runaway inflation, continued tightening of Federal Reserve policies, and rising recession risks has created an attractive entry opportunity in the stock. With Google playing a fundamental role in facilitating digital transformation in coming years, the company is well-positioned for sustained long-term growth, and inadvertently, promising returns for investors.

Wed, 27 Jul 2022 01:50:00 -0500 en text/html
Killexams : Google delays cookie-cutting to 2024 No result found, try new keyword!Google CEO Sundar Pichai speaks at a panel at the CEO Summit of the Americas hosted by the U.S. Chamber of Commerce on June 09, 2022 in Los Angeles, California. The CEO Summit entered its second day ... Wed, 27 Jul 2022 08:00:11 -0500 en-us text/html Killexams : Google Chrome Cookie Phase-Out Pushed Back To 2024: What Alphabet Investors Need To Know No result found, try new keyword!Alphabet, Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL) has announced it is pushing back its planned phase-out of third-party cookies in its Google Chrome browser until the second half of 2024. Mon, 08 Aug 2022 02:49:26 -0500 en-us text/html Killexams : Google delays Chrome cookie phase-out to 2024

Why it matters: Google has long been working on an alternative to cookies that splits the difference between user privacy and advertising revenue. However, the company needs more time before totally replacing third-party cookies in Chrome. Fortunately, public testing for Google's new initiative will start soon.

On Tuesday, Google announced that it's pushing its plans to eliminate third-party cookies in Chrome back by two years, as the feature isn't ready. However, users can start testing that alternative for themselves next month.

Cookies help advertisers track users and deliver personalized ads, but they're unpopular because they can compromise user privacy. European anti-cookie legislation is behind all those consent prompts seen on many websites. In 2020, Google announced work on a solution that would make third-party cookies obsolete, initially hoping to reach that goal in two years. Despite missing that timeline, the company isn't giving up.

Google's Privacy Sandbox aims to create a set of standards to help advertisers deliver personalized ads without revealing users' personal information. One of its components is Trust Tokens, which perform a role similar to cookies but with encryption to hide a user's identity. Privacy Sandbox incorporates many other technologies to keep ads relevant to users while limiting how much advertisers know about them.

These tools appear on Google's updated roadmap for the Privacy Sandbox. By now, all have started pre-launch testing and origin trials. The company set general availability for Q3 2023 and wants to phase out third-party cookies by late 2024. In February, Google revealed plans to bring the system to Android in another two years, falling roughly along the company's timeline for Chrome on desktops.

Chrome 104 stable branch will include the trial for desktop users when it launches in August. About half of Chrome desktop beta users already have it enabled. Android users will get it with Chrome 105 stable at the end of August.

Google's attempt to balance user privacy and the desires of advertisers contrasts with efforts from Apple, Firefox, and Brave to block tracking entirely. Google's business depends on advertising, whereas Apple's doesn't, and Google also thinks hardline blocking pushes advertisers to more covert methods like fingerprinting. With the Privacy Sandbox, the company wants to block fingerprinting while giving advertisers an alternative.

Wed, 27 Jul 2022 10:08:00 -0500 Daniel Sims en-US text/html
Killexams : Google Delays Its Cookie Cancellation…And Other Small Business Tech News This Week

Here are five things in technology that happened this past week and how they affect your business. Did you miss them?

1— Google’s update to replace third party cookies will be pushed back until 2024.

Google had previously stated that they would get rid of this system of digital advertising by 2022, however the date has been pushed back. Google has decided to hold back on this plan because they need to reevaluate their new privacy testing before getting rid of the existing system. Digital advertising has already taken a major hit from Apple and Facebook’s new privacy features which hiked the prices on digital advertisements. Google feels extremely confident that their alternatives will quench privacy concerns from many users. (Source: CNBC)

Why this is important for your business:

By now we all know what cookies are – those little applets that get downloaded to our devices in order to track our moves online. Google and other big online advertisers relied on cookies to target people. But, bowing to privacy concerns, the company decided to end its support of cookies in lieu of “alternatives” which we’re waiting to hear more about. If you advertise online, as I do, this will have a major impact on how you’re spending you money and your lead generation strategies. We got a stay of execution for a bit, but the inevitable downfall of cookies is coming.

2—Outlook recently released Outlook Lite for Android users.

On August 1st, Outlook released this new feature so that low-end Android users can use the app without needing 4G. The app includes many of the features as the normal Outlook app like email access, calendars, and contacts. However, it is not compatible with Android Work Profile and Mobile Application Management (MAM) for work accounts. This app is available in countries around the world. (Source: ZDNet)

Why this is important for your business:

Small business owners who use Outlook on their Android devices will find this new feature very helpful to Boost performance and adoption in their companies.

3— Digital wallets are going to surpass all forms of payment by 2026.

According to a global study, more than 60 percent of the population will only be using digital wallets in four years. The study also predicts a future where there are “super apps” that combine all your payment methods into one cohesive app. It will look like a modern day QR code that encodes many of the digital payment platforms like Paypal, Apple Pay, Google Pay, etc. (Source: Computer Weekly).

Why this is important for your business:

It’s taking longer than I expected but within the decade I expect to see almost no one using cash and very few people still using their plastic credit cards. Environmental benefits aside, the impact on small businesses is that we have to be prepared to accept payments using digital apps (crypt too!). Your point of sale software provider should be your first resource to turn to in order to make sure you’re payment methods are up to date.

4—Cyber hackers go after small businesses just as much as large corporations.

A small jewelry store in Georgia that was a victim to a cyber attack and this shocked many people. A new case study was released that — although many think that large corporations will be the victims of cyber attacks — small businesses are being attacked significantly more. Luckily for this business, they followed the protocol for backup storage. The leaders of the study urge small businesses to store backups in case of cyber security breaches. (Source: Yahoo Finance)

Why this is important for your business:

The study, conducted by a security firm, underscores the significant impact ransomware attacks are having on smaller firms. These things don’t get advertised because the media likes to focus on attacks affecting well-known institutions. But if you’re running a small business, know that you are very susceptible to a malware attack and should take all the necessary steps to protect yourself: software, training, backups, regular reviews, etc.

5— Previously a free online platform, Zayzoon, is now charging a $5 fee for workers to access payments.

ZayZoon - an online payment company that allows employees to access their earned wages on-demand - states that inflexible pay schedules are one of the main reasons for economic inequality. Their platform allows businesses to implement a program that gives employees access to accrued wages before the end of the payroll period. (Source: Tech Crunch)

Why this is important for your business:

According to TechCrunch, the platform is still free for companies, but the new $5 fee is for workers who want to choose how much of their wages they’d like to access, which can be up to $200. The downside is that this fee can add up for many low income workers who should be benefiting from the program.

Sat, 06 Aug 2022 23:00:00 -0500 Gene Marks en text/html
Killexams : 3 Things to Know About Amazon's Advertising Business No result found, try new keyword!Amazon's ad business grew at a faster pace than its rivals in the most recent quarter. The company doesn't have to worry about privacy changes like some of its rivals. Amazon's ad market share is ... Mon, 08 Aug 2022 01:40:35 -0500 en-us text/html
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