Alphabet Reports Earnings Today: Here’s What To Expect
Tech giant Alphabet is due to report its earnings today. Here is what investors can expect.
After market’s close today, Alphabet Inc. is going to unravel its earnings.
First: GOOGL (Class A Shares) hit a record high of $1587.05 per share in 2020. It is currently trading at a value close to $1517 per share.
It is expected that the stock will make big moves after reporting earnings and it can easily cover the gap if the numbers are strong.
However, if their Q2 earnings disappoint, the stock will gap down.
Street Expectations For Alphabet Q2 Earnings
It is reported that Alphabet will report a value of $8.43 per share on a value of $30.38 billion in revenue.
Few important concerns regarding Alphabet’s performance include the following:
- The market was affected by the corona pandemic in the last couple of months. Especially during March to April, the corona pandemic hit the markets adversely and major stocks suffered.
- Alphabet provides online advertising services in the U.S., Europe, Asia Pacific, Canada and Latin America. Ads have been a little slow these past few months because of stringent online policing and control. Therefore, companies such as Alphabet suffered.
- Google has a large fleet of products to offer. However, online business activity has suffered greatly in the past few months which has led to a slowdown in business and Alphabet holds no exceptional value.
The focus this time by Alphabet Inc. is on Cloud and Streaming services.
Alphabet’s YouTube and Cloud Services
Since most people worked from home in the last six to seven months, GOOGL’s YouTube and Cloud services provided access to the outside world. It was essentially what everyone needed for work and play (two of Google’s services YouTube and Cloud).
While overall usage dropped during the lockdown of Google products, classroom, YouTube, Android apps showed a lower activity. Overall though, Google was ‘in the works’ because of its YouTube and Cloud app.
Further news by Benzinga revealed that Google’s cloud platform outpaced other cloud based services.
In Q1, GOOGL’s cloud division posted a revenue of $2.78 billion, higher than 52% YOY.
Furthermore, Alphabet’s Google Cloud Platform infrastructure was higher than all units in the company’s cloud segment.
Essentially, Google Classroom (the cloud based service we are talking about) double its usage during early March. Last quarter, they ended with 100 million students/teachers.
While Covid concerns will be in full fruit in fall semester, it will be nice to see what Q2 figures reveal.
Furthermore, combined with virtual learning, there was a demand for laptops too.
Chromebook sales were 400% higher (YOY in March). In the case of virtual meetings, Google Meet wasn’t the top name in the Zoom Video Communications by coolness but it did see an increase of up to 100 million users in Q1. This is an indication of its performance in Q2. (Something you can eye on in Q2 for Google’s performance and results).
Google, just like Facebook today, has a lot of competition. The company is trading at $1,523.51 at the stock exchange.
Starting at $1,454.25, down at $1,054.13 and rising to $1,523.51 today, Alphabet Inc Class A (NASDAQ:GOOGL) will, according to tech unveiled, remain above sub and par value but beat analyst expectation by 10-15% per share.
Stay tuned for more updates at Tech Unveiled.