Alphabet and Sony Results Exceed Expectations

<p><a href="https://admiralmarkets.com/analytics/traders-blog/sony-alphabet-february-2022"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/Trading_News_Sony_Alphabet.jpg" data- data- data-alt="Trading News" data-height="373" data-width="800"><source type="image/webp" media="(min-width: 640px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/720x,webp/fxmedia.s3.amazonaws.com/articles/Trading_News_Sony_Alphabet.jpg"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/375x,webp/fxmedia.s3.amazonaws.com/articles/Trading_News_Sony_Alphabet.jpg"></source></picture></a></p><p>With all that has been going on recently – rising inflation, tension in eastern Europe, volatility in the stock market and the prospect of tightening monetary policy – some may have overlooked that we are right in the middle of earnings season.</p><p>This morning, Sony shares are up more than 4.8% in pre-market trading after releasing their <a rel="nofollow noopener" href="https://www.sony.com/en/SonyInfo/IR/library/presen/er/pdf/21q3_sonypre.pdf" target="_blank">quarterly results</a> for the three months ending 31 December 2021, which significantly exceeded the market’s expectations.</p><p>Sony reported revenue of 3 trillion yen ($26.4 billion), against an expected 2.9 trillion yen ($25.46 billion), which represented an increase of 13% year-on-year (YOY). Operating profit for the quarter jumped an impressive 32% YOY, reaching 465.2 billion yen ($4.05 billion).</p><p>These better than expected results were largely thanks to a surge in earnings from its pictures unit, in which operating income increased more than 636% YOY, following the success of “Spider-Man: No Way Home”.</p><p>These positive results led to Sony revising their full-year profit forecast from 1.04 trillion yen up to 1.2 trillion yen.</p><p>Another company performing well in pre-market trading this morning is technology giant Alphabet (parent company to Google), whose share price is up more than 10% off the back of their own positive <a rel="nofollow noopener" href="https://abc.xyz/investor/static/pdf/2021Q4_alphabet_earnings_release.pdf?cache=d72fc76" target="_blank">results</a> for the final quarter of 2021.</p><p>Alphabet reported total revenue of $75.3 billion for the quarter, a 32% increase YOY and significantly higher than the expected $72.2 billion. For the full-year 2021, revenue was reported as $257.6 billion, a 41% increase YOY.</p><p>Net income for the quarter increased 36% YOY to $20.6 billion and, for the full-year 2021, was reported at $76 billion, an incredible increase of 89% from the previous year.</p><p>These impressive figures were largely driven by Google and YouTube’s advertising businesses, which generated 92.7% of revenue in the fourth quarter, largely due to the pandemic, which has fuelled an increase in digital advertising.</p><p>Alphabet also announced that the company would undertake a twenty-for-one <a href="https://admiralmarkets.com/education/articles/shares/stock-split" target="_blank" rel="noopener">stock split</a> on 15 July, subject to shareholder approval. In 2020, Apple and Tesla shares both soared following the news and implementation of their own respective stock splits.</p><p>One of the benefits of stock splits is that it makes expensive stocks more affordable to a larger pool of investors, which sometimes has the effect of increasing demand and, therefore, pushing up price. However, with the rising availability and popularity of <em>fractional shares</em>, it is possible that the tactic will not be quite as effective in this regard as it has been in the past.</p><figure><a href="https://admiralmarkets.com/analytics/traders-blog/sony-alphabet-february-2022"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/Alphabet_Daily_Chart-1.png" data- data- data-alt="Alphabet Daily Chart" data-height="1324" data-width="2804"><source type="image/webp" media="(min-width: 640px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/720x,webp/fxmedia.s3.amazonaws.com/articles/Alphabet_Daily_Chart-1.png"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/375x,webp/fxmedia.s3.amazonaws.com/articles/Alphabet_Daily_Chart-1.png"></source></picture></a>
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<p><em>Depicted: Admirals MetaTrader 5 – Alphabet Inc. (Class A) Daily Chart. Date Range: 3 June 2021 – 1 February 2022. Date Captured: 2 February 2022. Past performance is not a reliable indicator of future results.</em></p>
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</figure><figure><a href="https://admiralmarkets.com/analytics/traders-blog/sony-alphabet-february-2022"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/Alphabet_Weekly_Chart.png" data- data- data-alt="Alphabet Weekly Chart" data-height="1324" data-width="2804"><source type="image/webp" media="(min-width: 640px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/720x,webp/fxmedia.s3.amazonaws.com/articles/Alphabet_Weekly_Chart.png"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/375x,webp/fxmedia.s3.amazonaws.com/articles/Alphabet_Weekly_Chart.png"></source></picture></a>
<figcaption><em>Depicted: Admirals MetaTrader 5 – Alphabet Inc. (Class A) Weekly Chart. Date Range: 9 August 2015 – 1 February 2022. Date Captured: 2 February 2022. Past performance is not a reliable indicator of future results.</em></figcaption>
</figure><p> </p><p><b>Invest with Admirals</b></p><p>With an <a href="https://admiralmarkets.com/start-trading/admiral-invest-stocks-and-etfs" target="_blank" rel="noopener">Invest.MT5 account</a>, you can buy shares in Alphabet, Sony and over 4,300 other listed companies from 15 of the largest stock exchanges in the world! Other benefits of the Invest.MT5 account include:</p><ul>
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