Alphabet achieves the best performance among tech giants in 2021


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Alphabet holding, which owns Google, demonstrated the best dynamics on the stock exchange among all tech giants in 2021. The outgoing year promises to be the most successful for the company since 2009.

In 2021, Alphabet shares have risen in price by 68%: no other tech giant will have time to catch up with the company in the remaining days of the outgoing year. The second result was shown by Microsoft, whose shares rose in price by 51%, the third was Apple with an increase of 33%, the fourth place was taken by Meta (formerly Facebook) with 23%, and Amazon closes the top five with 5%. Tesla can also be added to the list – its shares showed 51% growth in 2021.

Alphabet, which gets the vast majority of its revenue from Google’s advertising business, has proven resilient during the Covid pandemic and resistant to the latest bout of inflationary concerns. Consumers have flocked in greater numbers to web and mobile search, maps and YouTube videos, and Google’s growing cloud infrastructure unit picked up business from the explosion in remote work.

Alphabet achieves the best performance among tech giants in 2021

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The bulk of Alphabet’s revenue comes from Google’s advertising business; which neither the pandemic nor fears of US inflation have been able to shake. In October, the company reported that in the third quarter, advertising revenue amounted to $ 53.1 billion; and this is an annual growth of 43%; and YouTube also showed an increase in revenue from advertising sales – $ 7.2 billion. Unlike other advertising platforms, the company did not suffer from Apple iOS privacy policy changes.

According to analysts’ expectations, by the end of 2021, Alphabet’s revenue will grow by 39% to $ 254 billion; an excellent result after a modest 13% growth in a difficult 2020. Since the beginning of 2021, the growth of Google’s advertising business has returned to pre-pandemic levels. Countries began to reopen, and users began to search for goods and plan travel. The last time the company showed such results was 12 years ago, when its shares more than doubled in a year, and the market capitalization did not even reach $ 1 trillion – this mark was conquered in January 2020, the second trillion was passed in November 2021.

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Other areas of Alphabet are doing well. In the third quarter, Google Cloud’s revenue increased by 45%, reaching $ 4.99 billion. The service is still inferior to Amazon Web Services and Microsoft Azure; but its performance is growing even as a backup platform for those companies that do not want to rely on only one cloud provider. In 2022, Alphabet’s revenue growth, analysts say, will slow to 17%; which is in line with the pre-pandemic level of 2019.

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