$Alphabet(GOOGL)$ Excluding the paper gains from SpaceX and Anthropic, Alphabet's core EPS comes in at $2.85, which is pretty close to the $2.88 forecast. Most analysts tend to back out those massive unrealized gains from their calculations. Leaving a $98 billion paper gain in the numbers artificially inflates the reported EPS and can obscure the significant cash burn and CapEx happening in Google Cloud and Search infrastructure right now.
If you strip out that roughly $98 billion net unrealized gain from non-marketable equity securities—which includes the Anthropic revaluation and SpaceX markup—the adjusted results look quite different on a GAAP versus non-GAAP basis.
The reported GAAP EPS is $10.82, which includes that paper gain. But the operating or core business EPS is just $2.85. Wall Street is scrutinizing CapEx and profit margins more closely than ever. Still, I bought the dip.
$Amazon.com(AMZN)$ $Meta Platforms, Inc.(META)$ $Microsoft(MSFT)$ $Oracle(ORCL)$
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