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Google Heavy ETFs in Focus Following Upbeat Q2 Earnings
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Alphabet (GOOGL - Free Report) came up with better-than-expected second-quarter earnings on Jul 23 after market close. Earnings of $1.89 per share surpassed the Zacks Consensus Estimate of $1.85 by 2.16%. This marks an improvement from earnings of $1.44 per share recorded in the same period last year.
GOOGL, which belongs to the Zacks Internet - Services industry, has added about 31% since the beginning of the year, outperforming the S&P 500's gain of 16.48%. However, even after beating revenue and profit estimates, shares of the tech giant fell about 2.77% during pre-market hours on Jul 24.
Snapshot of Q2 Earnings
The tech giant posted revenues of $71.35 billion for the quarter ended June 2024, surpassing the Zacks Consensus Estimate of $70.60 billion by 1.07%. This marked a substantial increase of 14.97% from the year-ago quarter.
Alphabet’s net income saw a substantial surge of 28.59% from the year-ago quarter to $23.62 billion. The company’s operating income for second-quarter 2024 was $27.43 billion, which marked an increase of 25.85% from the year-ago quarter.
Segment Snapshots
First-quarter revenues from Google advertising reached $64.62 billion, up 11.13% from the year-ago quarter, highlighting robust demand for digital advertising, fueled by events such as the Paris Olympics and elections in multiple countries. The company’s revenues from YouTube ads increased 13.02% from the same quarter last year, hitting $8.66 billion.
Alphabet’s Google Cloud business witnessed a substantial surge, driven by the widespread adoption of generative AI technology, with operating income skyrocketing to $1.17 billion, nearly tripling from the prior-year figure. Revenues from the segment also witnessed a rise of 28.84% year over year to $10.35 billion.
According to Sundar Pichai, CEO of Alphabet, as quoted in the earnings release of the tech giant, the second quarter's better-than-expected performance highlights the momentum in the company’s Search and Cloud segments. Revenues from Alphabet’s Google Search & other segment generated $48.51 billion in the second quarter, a 13.79% surge from the year-ago quarter.
Explore ETFs
The earnings results might have a huge impact on ETFs heavily invested in this Internet giant. Here, we have highlighted ETFs with double-digit exposure to Alphabet.
Communication Services Select Sector SPDR Fund (XLC - Free Report)
Communication Services Select Sector SPDR Fund seeks to track the performance of the Communication Services Select Sector Index with a basket of 22 securities. The fund has gathered an asset base of $19.25 billion and charges an annual fee of 0.09%.
Communication Services Select Sector SPDR Fund has an exposure of 12.63% in GOOGL. The fund has gained 5.15% over the past three months and 32.94% over the past year.
Vanguard Communication Services ETF seeks to track the performance of the MSCI US Investable Market Communication Services 25/50 Index, with a basket of 117 securities. The fund has amassed an asset base of $3.95 billion and charges an annual fee of 0.10%.
Vanguard Communication Services ETF has an exposure of 12.58% in GOOGL. The fund has gained 5.59% over the past three months and 31.34% over the past year.
Fidelity MSCI Communication Services Index ETF (FCOM - Free Report)
Fidelity MSCI Communication Services Index ETF seeks to track the performance of the MSCI USA IMI Communication Services 25/50 Index with a basket of 106 securities. The fund has gathered an asset base of $1.17 billion and charges an annual fee of 0.08%.
Fidelity MSCI Communication Services Index ETF has an exposure of 12.57% in GOOGL. The fund has gained 5.57% over the past three months and 30.80% over the past year.
IShares Global Comm Services ETF seeks to track the performance of the S&P Global 1200Communication Services 4.5/22.5/45 Capped Index with a basket of 65 securities. The fund has gathered an asset base of $365.1 million and charges an annual fee of 0.42%.
IShares Global Comm Services ETF has an exposure of 12.40% in GOOGL. The fund has gained 5.86% over the past three months and 31.20% over the past year.
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Google Heavy ETFs in Focus Following Upbeat Q2 Earnings
Alphabet (GOOGL - Free Report) came up with better-than-expected second-quarter earnings on Jul 23 after market close. Earnings of $1.89 per share surpassed the Zacks Consensus Estimate of $1.85 by 2.16%. This marks an improvement from earnings of $1.44 per share recorded in the same period last year.
GOOGL, which belongs to the Zacks Internet - Services industry, has added about 31% since the beginning of the year, outperforming the S&P 500's gain of 16.48%. However, even after beating revenue and profit estimates, shares of the tech giant fell about 2.77% during pre-market hours on Jul 24.
Snapshot of Q2 Earnings
The tech giant posted revenues of $71.35 billion for the quarter ended June 2024, surpassing the Zacks Consensus Estimate of $70.60 billion by 1.07%. This marked a substantial increase of 14.97% from the year-ago quarter.
Alphabet’s net income saw a substantial surge of 28.59% from the year-ago quarter to $23.62 billion. The company’s operating income for second-quarter 2024 was $27.43 billion, which marked an increase of 25.85% from the year-ago quarter.
Segment Snapshots
First-quarter revenues from Google advertising reached $64.62 billion, up 11.13% from the year-ago quarter, highlighting robust demand for digital advertising, fueled by events such as the Paris Olympics and elections in multiple countries. The company’s revenues from YouTube ads increased 13.02% from the same quarter last year, hitting $8.66 billion.
Alphabet’s Google Cloud business witnessed a substantial surge, driven by the widespread adoption of generative AI technology, with operating income skyrocketing to $1.17 billion, nearly tripling from the prior-year figure. Revenues from the segment also witnessed a rise of 28.84% year over year to $10.35 billion.
According to Sundar Pichai, CEO of Alphabet, as quoted in the earnings release of the tech giant, the second quarter's better-than-expected performance highlights the momentum in the company’s Search and Cloud segments. Revenues from Alphabet’s Google Search & other segment generated $48.51 billion in the second quarter, a 13.79% surge from the year-ago quarter.
Explore ETFs
The earnings results might have a huge impact on ETFs heavily invested in this Internet giant. Here, we have highlighted ETFs with double-digit exposure to Alphabet.
Communication Services Select Sector SPDR Fund (XLC - Free Report)
Communication Services Select Sector SPDR Fund seeks to track the performance of the Communication Services Select Sector Index with a basket of 22 securities. The fund has gathered an asset base of $19.25 billion and charges an annual fee of 0.09%.
Communication Services Select Sector SPDR Fund has an exposure of 12.63% in GOOGL. The fund has gained 5.15% over the past three months and 32.94% over the past year.
Vanguard Communication Services ETF (VOX - Free Report)
Vanguard Communication Services ETF seeks to track the performance of the MSCI US Investable Market Communication Services 25/50 Index, with a basket of 117 securities. The fund has amassed an asset base of $3.95 billion and charges an annual fee of 0.10%.
Vanguard Communication Services ETF has an exposure of 12.58% in GOOGL. The fund has gained 5.59% over the past three months and 31.34% over the past year.
Fidelity MSCI Communication Services Index ETF (FCOM - Free Report)
Fidelity MSCI Communication Services Index ETF seeks to track the performance of the MSCI USA IMI Communication Services 25/50 Index with a basket of 106 securities. The fund has gathered an asset base of $1.17 billion and charges an annual fee of 0.08%.
Fidelity MSCI Communication Services Index ETF has an exposure of 12.57% in GOOGL. The fund has gained 5.57% over the past three months and 30.80% over the past year.
IShares Global Comm Services ETF (IXP - Free Report)
IShares Global Comm Services ETF seeks to track the performance of the S&P Global 1200Communication Services 4.5/22.5/45 Capped Index with a basket of 65 securities. The fund has gathered an asset base of $365.1 million and charges an annual fee of 0.42%.
IShares Global Comm Services ETF has an exposure of 12.40% in GOOGL. The fund has gained 5.86% over the past three months and 31.20% over the past year.