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Alphabet Earnings: The Sweet Spell of Success for GOOG Stock

By U.S. News & World Report

OK kiddos, how do you spell Alphabet? Hint: It begins with “A plus-plus-plus.” And so far as Wall Street is concerned, Alphabet (ticker: GOOG) spells big revenues and big profits. It’s the stock that can’t be beat, even as it beats Wall Street.

With advertising driving robust revenues, Google’s parent company reported earnings per share of $8.67 on $21.33 billion in revenue. Those figures from the fourth-quarter earnings report — Alphabet’s first as a newly launched umbrella entity — easily topped analysts’ forecast of $8.10 and $20.77 billion.

And insofar as bragging rights, Alphabet claimed the mantle of world’s most valuable company, passing Apple (APPL). With GOOG stock bumping up more than 5 percent in after-hours trading Monday, Alphabet’s $550 billion in market capitalization easily eclipses the iPhone and MacBook maker’s $538 billion.

Such an outcome would’ve been unthinkable a year ago, when Apple enjoyed close to $775 billion in market cap, while Google stood at less than half that at $366 billion. But these have been rough times for Apple; its disappointing earnings report last week led the company to shed close to $37 billion — an astonishing amount — in a single day.

“Alphabet is also in a much better position than Apple to tackle innovation challenges and bring new, appealing products to market,” says Clement Thibault, editor of Investing.com. Breaking dependency on the premium smartphone segment “is something Apple has been having a lot of trouble with.”

About the only thing Alphabet’s leaders were having trouble with Monday, if anything, was popping the corks on the bubbly.

Alphabet’s Class A stock (GOOGL) spiked more than 7 percent in the first 10 minutes of after-hours trading Monday. Meanwhile, Alphabet saw its Class C stock (GOOG) jump more than 8 percent after Monday’s closing bell. Both stocks retreated slightly after those surges.

“Our very strong revenue growth in Q4 reflects the vibrancy of our business, driven by mobile search as well as YouTube and programmatic advertising, all areas in which we’ve been investing for many years,” Alphabet CFO Ruth Porat says.

And indeed, advertising is the magic word here. It’s a key component for Alphabet’s success, just as it has been for Facebook (FB), another big winner in the fourth-quarter earnings sweepstakes. Alphabet’s earnings shot up 18 percent year over year.

“For the fourth quarter of 2015, Alphabet’s paid search dollars grew 8 percent year to year, with the key driver of mobile search seeing 74 percent growth,” says Tim Hurst, an analyst with the Roland George Investments Program at Stetson University in DeLand, Florida. “And for 2016, Google’s bloodline, digital display video ads are expected to hit $33.5 billion in revenue. For the first time, that will surpass their traditional search ad revenue of $30.1 billion.”

“Alphabet is, in my opinion, today’s equivalent to what IBM was in the latter half of the 20th Century and more,” says Matt Towery, author of “Newsvesting: Use News and Opinion to Grow Your Personal Wealth.” “It’s hard not to notice that since the FCC ruling on net neutrality [in February 2015], their shares have soared. With such diversity in new products and dominance in their core business, they have become the true blue chip stock for the future.”

Meanwhile, Alphabet also introduced a new reporting wrinkle. “We’re excited about the opportunities we have across Google and Other Bets to use technology to improve the lives of billions of people,” says Porat, referring to the new way Alphabet will categorize its operations.

“Other Bets” now stands as a slot for the company’s newer ventures, which Alphabet has broken off from its core Internet businesses and high-tech products.

That’s likely to pacify investors, because some of Alphabet’s “Other Bets” and pet projects, even if visionary, are just plain wacky by Wall Street standards. Stratospheric Wi-Fi balloons. Levi’s smart jeans. (Do they tell you when your waistline needs to lay off the Twinkies?) Self-propelled cars aiming to become Uber without the driver.

But as for Alphabet’s core businesses, including Google, they could fund enough side wagers to fill 1,000 casinos. It also bought back 514,000 shares.

Investors, you may place your bets on the odds-on favorite.

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Alphabet Earnings: The Sweet Spell of Success for GOOG Stock originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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