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Market Views

Google’s advertising revenue plunges

Google Properties revenue dropped 8% to $25.13 billion.

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Gmail and other Google services get restored after massive outage, Google set to extend footprints with acquisition of smartwatch company, Fitbit  , Google wants to start banking with you ,Google partners Flutterwave to train 5,000 merchants, Google to pay Online publishers for high quality contents

Google, the world’s most popular search engine firm, was the only one out of the four major technology companies (including Amazon, Facebook, and Apple) that failed to impress investors with its Q2 2020 earnings results.

Why Google shares plunged: Google Properties revenue dropped 8% to $25.13 billion as against estimates of $24.98 billion. That segment includes advertising and services revenue from Gmail, Google Play, YouTube, and Google Search.

READ MORE; Top Nigerian FinTech Apps that are leading the competition

Alphabet shocked investors on Friday by reporting a decline in Google’s advertising revenue year-over-year for the first time in history. Consequently, Alphabet’s class A (Google’s parent company) share price closed at $1,482.96 after losing about 3.17%, breaking its strong support level of $1,500.

Stock traders’  growing concern over Google’s ability to raise its revenue from advertising  was partly responsible for the unimpressive performance in its share price

READ MORE: Twitter forecasts future drop in revenue after milestone record in Q4 2019

However, the search engine giant reported quarterly profit of nearly $7 billion on revenue that topped $31 billion after removing traffic-acquisition costs.

“We’re working to help people, businesses, and communities in these uncertain times,” said Sundar Pichai, Chief Executive Officer of Google and Alphabet. “As people increasingly turn to online services, our platforms — from Cloud to Google Play to YouTube — are helping our partners provide important services and support their businesses.”

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READ ALSO: Top ten apps Nigerian professionals should have on their phones

Why you shouldn’t sell the stock yet: Amid all the bad macros stated above, YouTube advertising revenue surged by 6%, even as Alphabet’s latest business segment, cloud computing business, got 43% bigger in Q2, 2020

“In the second quarter our total revenues were $38.3B, driven by the gradual improvement in our ads business and strong growth in Google Cloud and Other Revenues,” said Ruth Porat, Chief Financial Officer of Alphabet and Google. “We continue to navigate through a difficult global economic environment,” she added.

Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment trading. Message Olumide on Twitter @tokunboadesina. He is a Member of the Chartered Financial Analyst Society.

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    Market Views

    Ethereum breaks $4000 and 5 Big Takes for the week

    The 2nd week of May promises to be a profitable week, spurred on by the activities of last week.

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    What you should know before investing in Cryptocurrency

    The 2nd week of May promises to be a profitable week, spurred on by the activities last week. Here are the key events that affected the economy and markets last week.

    What are the regulators doing?

    CBN made the news in two major ways. Firstly, the apex bank indefinitely extended the Naira4dollar scheme for diaspora remittances. The initiative rewards recipients N5 for every $1 they receive through IMTOs and commercial banks. It was initially supposed to end on May 8th. Many analysts we have spoken to seem to believe this is another form of naira devaluation.

    Another interesting news from the CBN was its plans to reject the continuous importation of maize in Nigeria.

    READ: Why Ethereum is becoming more attractive than Bitcoin

    What fixed income opportunities are available?

    Last week the DMO (Debt Management Office) announced an offer for subscription of the May 2021 Federal Government Savings Bond to investors.

    The Debt Management Office (DMO), on behalf of the Federal Government has announced the offer for subscription of the May 2021 Federal Government Savings Bond to investors.

    This disclosure is contained in a circular issued by the DMO on May 3, 2021, and can be seen on its website noting that there are 2-year and 3-year savings bonds. The breakdown of the bonds shows that the 2-year FGN savings bond will be due on May 12, 2023, at 7.753% per annum and the 3-year FGN Savings Bond which will be due on May 12, 2024, at 8.753% per annum.

    The offer has an opening date of May 3, with a closing date of May 7. Although this window is closed. Portfolio diversification is critical for any investor and bonds are one of the safest asset classes.

    READ: Nigerian stocks that outperformed Bitcoin, Ethereum and Cardano in April

    Should volatility in Crypto shock anybody?

    Over the weekend, another incredible market volatility transpired with the Dogecoin going down about 21.34% for the day on Sunday. Elon Musk´s appearance on SNL seems to have had a negative effect on the crypto asset’s price.

    Ethereum at the time of writing this report is currently trading at an all-time high of $4,053, up by 2.72% in 24 hours. There are many investment opportunities in cryptocurrencies but because of the tremendous market volatility, it is important for investors to invest with caution. The rule of thumb is not to invest more than you are willing to lose.

    READ: Why Ethereum transaction fees are often expensive

    Stock market bounce?

    The Nigerian Stock Exchange made a bullish recovery on Friday. Its year-to-date stands at -2.66%. There is still a lot of upside for Nigerian stocks which remain relatively cheap compared to other emerging markets. In a Twitter Spaces conversation with Ugodre Obi-Chukwu, analysts stated that the true value of the Nigerian economy is not reflected in the NGX. ¨Out of the 166 listed companies, only about 30 are tradeable,¨ according to one analyst.

    In a period where there should be a lot of capital allocation to emerging markets like Nigeria, a major deterrence to this is our FX situation. Investors have issues getting their money out of the Nigerian economy.

    Another Corruption case

    It was reported that the FG will probe the suspended MD of Nigerian Ports Authority, Hadiza Bala-Usman for the alleged non-remittance of over N165 billion operating surplus to the Consolidated Revenue Fund by the NPA management.

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    Billionaire Watch

    Bill Gates’ cash can buy Nigeria’s Stock Market

    Founder of Microsoft, Bill Gates’ cash in the bank can currently buy Nigeria’s stock market.

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    Bill Gates, Bill Gates reveals his superpowers and it is not what you think 

    Founder of Microsoft, Bill Gates’ cash in the bank can currently buy the Nigerian stock market.

    Most recent data postulates that the tech billionaire currently holds about $59.1 billion in the bank, far surpassing Nigeria’s Stock Exchange valuation of $53.7 billion (N20.4 trillion) at the time this report was drafted.

    Bill Gates Net Worth amid Divorce With Melinda

    The American billionaire is currently the fourth richest man in the world and his net worth is at a record high despite transferring nearly $2.4 billion in securities to Melinda Gates via Cascade Investment, Bill Gates investment vehicle, after filing for a divorce.

    The troubled couple however affirmed their plan on remaining co-chairs and trustees of the Bill & Melinda Gates Foundation. Bill Gates’ close confidant, Warren Buffett is the foundation’s third trustee.

    Bill Gates’ wealth is currently valued at $146 billion and he is estimated to have gained 14.1 billion in barely four months.

    READ: Bill Gates holds far more cash than Nigeria’s foreign reserve

    Gates has earned more than $50 billion in stock and dividends, including a $3.3 billion payout from Microsoft in 2004, as he owns about 1% of the world’s biggest software company.

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    He is the biggest shareholder of Canada’s biggest railroad operator, the Canadian National Railway.

    Bill Gates made his wealth when he simplified the computer operating system by creating Microsoft Windows, the leading operating system in personal computers globally.

    The billionaire has also disclosed that he doesn’t have any Bitcoin and spoke on the high price swing of the flagship crypto, often driven by “mania” prevailing in crypto markets making it hard for a normal investor to predict the crypto asset’s trajectory.

    READ: The Gates Divorce: Bill Gates’ Holding Company transfers $1.8bn of equities to Melinda Gates

    The data above shows that Bill Gates holds a significant amount of his wealth in cash, although it is noteworthy that he also has exposures in global equities, real estate, and collectables, which are also significant wealth creators for him.

    Market experts have opined that the rationale behind holding so much cash amid rising inflation is to fund his philanthropic missions as he donates much of his wealth to causes that help better the world.

    Gates’s current wealth valuation can at present, buy 80.2 million troy ounces or 2.14 billion barrels of crude oil.

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