Alphabet Earnings: What to Expect?
Fiona Cincotta October 28, 2019 9:45 AM
Alphabet (Google parent) will unveil Q3 results, ad revenue is a key metric
Alphabet is due to release Q3 results after the closing bell today. So, what should investors be expecting? A disappointing performance like that of Q1 which sent the share price tumbling? Or the knockout earnings performance of Q2 which lifted the stocks some 10%?
* Revenue expectation: $40.3 billion
* EPS expectation: $12.28
As always investors should focus on revenue growth. Weaker than forecast revenue from slowing ads sales spooked investors in Q1 (17% growth). However, a better than forecast figure in Q2 (19% growth) helped the stock surge. The key growth drivers were the usual catalysts; mobile search, YouTube and Google cloud.
Other points worth watching:
• Paid clicks to see whether traffic volumes are increasing – a larger audience can offset and ad price drop.
• Regulatory barriers in Waymo ride hailing service
• Strong dollar headwinds negatively impacting both revenue and operating income
• How much is being spent on clod service to compete with Microsoft & Amazon cloud services?
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