AlphabetAlphabet
Inc. is scheduled to report earnings after Thursday’s close. The stock hit a record high near $160.22/share in 2024 and, as of this writing, it is currently trading near $152. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview
The company is expected to report a gain of $1.49/share on $78.61 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $1.55/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals
The company has grown its earnings nicely over the last several years. In 2020 the company earned $2.64, in 2021 the company earned $5.00, and in 2023 it earned $5.74.
Looking forward, the company is expected to grow its earnings to $6.91 in 2024 and then $7.96 in 2025. Meanwhile, the stock sports a price to earnings ratio of 28 which is 1.2 x S&P 500.
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A Closer Look At The Technicals
Technically, the stock is acting well. It is trading around 5% below its 52-week high and currently trading above its 50 day moving average line. The stock is not that far away from its all-time high near $160.22/share. The bulls want to see the stock gap up and rally after reporting earnings and the bears want to see it gap down and fall. The stock enjoys strong relative strength and is outperforming most of its peers and the most of the major indices.
Company Profile
Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America.
It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment provides products and services, including ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube.
It is also involved in the sale of apps and in-app purchases and digital content in the Google Play and YouTube; and devices, as well as in the provision of YouTube consumer subscription services.
The Google Cloud segment offers infrastructure, cybersecurity, databases, analytics, AI, and other services; Google Workspace that include cloud-based communication and collaboration tools for enterprises, such as Gmail, Docs, Drive, Calendar, and Meet; and other services for enterprise customers.
The Other Bets segment sells healthcare-related and internet services. The company was incorporated in 1998 and is headquartered in Mountain View, California.
Pay Attention To How The Stock Reacts To The News
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclosure: The stock has been featured on FindLeadingStocks.com
