Neil Cybart 11/14/24 Neil Cybart 11/14/24

Alphabet 3Q24 Earnings, Three Takeaways from Alphabet’s 3Q24 Numbers, Three Takeaways from Alphabet’s 3Q24 Earnings Call

Today's Above Avalon Daily email contains the following story:

Alphabet 3Q24 Earnings
Three Takeaways from Alphabet’s 3Q24 Numbers
Three Takeaways from Alphabet’s 3Q24 Earnings Call

Hello everyone.

We are going to try something new with Big Tech 3Q24 earnings reviews. After going over a very big picture overview of what each company reported, we will then discuss three takeaways from the numbers (i.e. the earnings release) and then three takeaways from the earnings conference call. Those call takeaways will probably end up having a more qualitative feel to them. A goal found with this approach is to emphasize the most important items from earnings versus just going through a running collection of observations with varying degrees of importance. We will see how this new format goes. Today’s update will be focused on Alphabet’s earnings.

One quick update to yesterday’s discussion. The following was mentioned:

“It's certainly possible that Apple’s top shareholders don’t mind the current dividend payout ratio and aren’t clamoring for Apple to pay a higher payout as it means they would be paying more in tax (there’s no tax associated directly with share buyback).”

Thank you to member Ravi for reaching out via email to remind me that there is a new 1% excise tax facing share buyback. While my commentary was strictly about taxes facing shareholders (there is no direct tax impact on shareholders related to buyback), Apple is liable for the 1% excise tax. At 1%, the tax is not significant enough to sway strategy or capital return preference.

Let’s jump into today’s update.

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