On the earnings call Google shared they were going to recognize over 50% of their $462 billion dollar backlog in the next 24 months.
That would make Google cloud operation have $310 billion of revenue in 2 years.
The current margins for their cloud business is 33%. But increasing. The backlog for Google includes both cloud and chips so think a 40% margin is reasonable.
That would give Google $124 billion of new earnings. Apple in 2025 made $117 billion or actually LESS than the size of Google's cloud business in 2 years.
Why is nobody talking about this?
What do I have wrong here?
Google is going to add Apple 2025 financials in the next 2 years?
byu/bartturner instocks
Posted by bartturner
3 Comments
You have nothing wrong there is a reason why google added 400 billion dollars in market cap recently the stock responded.
It’ll respond more as this backlog either comes to fruition or not of course.
the math isn’t wrong but the real question is whether the market’s already pricing this in.. GOOG is up big and smart money reads backlogs before reddit does
Can somebody explain the revenue backlog to me?