Alphabet: 10 years of progress
Over the past 10 years, Alphabet Inc.'s revenue has grown at a CAGR of 18.2%, increasing from $66 billion in 2014 to $350 billion in the past fiscal year.
The company's operating profit grew at a CAGR of 21.2%, reaching $112.4 billion in FY2024, which is 5.8 times higher than in 2014.
During this period, net profit increased by more than $85 billion, reaching $100 billion in FY2024. Alphabet’s EPS, adjusted for the 20-for-1 stock split in 2022, grew at a CAGR of 22.6%, reaching $8.04 in FY2024.
Alphabet’s CAPEX grew at a CAGR of 17%, increasing from $11 billion in 2014 to $52 billion last year.
Another interesting fact: Alphabet’s share-based compensation expenses grew at a CAGR of 18.2%—from $4.3 billion in FY2014 to nearly $23 billion a decade later, aligning exactly with Alphabet’s 18.2% revenue CAGR.
Over the past 10 years, Alphabet’s shareholders have earned a CAGR return of 21.7% on the stock market. A $GOOGL share can now be purchased for $189, whereas at the end of 2014, it was trading at $26.53 (adjusted for the stock split).
Read the full analysis of Alphabet's Q4/FY2024 on our Substack/LinkedIn-page
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