At Extreme Investor Network, we are always on the lookout for the latest trends and opportunities in the investing world. Today, we are focusing on Google parent company Alphabet’s upcoming earnings report, set to be released after the bell on Thursday. This earnings announcement comes amidst a busy week for Big Tech earnings, with investors eager to see how the company has been performing.
As of Wednesday’s close, Alphabet’s stock has been on a strong upward trend, up 13.9% year-to-date and a whopping 50% over the past 12 months. Investors have been particularly pleased with the company’s growth in its cloud business, as well as its investments in artificial intelligence and tools. Additionally, recent layoffs at Alphabet have also been well-received by investors.
Analysts are expecting Alphabet to report earnings of $1.51 per share on revenue of $78.59 billion for the first quarter. This represents expected growth of approximately 29% for earnings per share and 12.6% for revenue compared to the same period last year. But what are analysts really looking for in Alphabet’s earnings report?
Key areas of focus include Alphabet’s revenue from the Google Cloud business, YouTube ads, and traffic acquisition costs. Analysts will also be keen to hear updates on the company’s AI products and ad trends, especially in light of an improving digital advertising market. Recent comments from Meta Platforms about heavy spending to meet AI goals have also stirred up interest in Alphabet’s upcoming report.
Analysts are generally positive on Alphabet stock, with about 80% of analysts covering the stock rating it as either buy or overweight. Consensus price targets suggest a 5.5% upside from Wednesday’s close, indicating optimism about the company’s future performance.
On a more granular level, Jefferies analyst Brent Thill remains bullish on Alphabet, expecting a strong first-quarter performance driven by a solid ad business, resilient consumer spending, and likely in-line cloud demand. Thill has a buy rating and a $180 price target on the stock, noting that Google Cloud could be a key growth driver for the company.
Canaccord Genuity Capital Markets analyst Maria Ripps also has a positive outlook on Alphabet, maintaining her $190 price target and buy rating on the stock. She expects solid Q1 results, with advertising revenue growing in the low double-digit rate year-over-year, thanks to an improved macro backdrop for ad spending and growing traction with AI solutions.
Looking back at Alphabet’s fourth-quarter earnings, the company saw its fastest revenue growth since early 2022, beating analysts’ forecasts for both revenue and earnings. However, a lower-than-expected ad revenue for YouTube caused shares to slide post-earnings. Despite this, Alphabet remains focused on innovation and investment in AI, with recent initiatives like the rebranded generative AI chatbot Gemini and investments in AI systems developer Anthropic.
As we await Alphabet’s earnings report, it’s clear that the company’s performance will be closely watched by investors and analysts alike. Make sure to stay tuned to Extreme Investor Network for the latest updates and analysis on Alphabet and other investment opportunities.
