Alphabet share price: what to expect from Q1 results

Google parent Alphabet has to answer these questions from investors before its Q1 earnings report.

Google logo before Alphabet's Q1 earnings Source: Bloomberg

Google parent Alphabet is set to announce its Q1 earnings next week. Alphabet’s Q1 revenue has to answer these three questions from investors.

Could Amazon cause a decline for Alphabet’s Q1 earnings?

Though Google is the most dominant search engine, its main competition is Amazon. According to Hubspot, when customers search for products to buy online, 44% of shoppers go directly to Amazon while 33% look at Google first. Amazon is capitalising on that advantage by investing heavily in its own paid search advertising business. With Amazon’s digital advertising catching up with Google, Alphabet’s Q1 results could be affected.

Will EU fines hurt Alphabet's Q1 results?

Google’s parent Alphabet was hit by a $1.7 billion fine from the European Union(EU) resulting from accusations of anticompetitive practices. The levy was the third in as many years for the corporation. The EU charged Google with forcing websites using Google to show ads that link to the company. The multibillion dollar fine could greatly affect Alphabet’s Q1 revenue.

Will Waymo and 'Other Bets' impact Alphabet's Q1 profits?

While Google is the most prominent part of Alphabet, the company’s other businesses could also influence Alphabet’s Q1 profits. The underperformance of Alphabet’s additional ventures like the Pixel smartphone in its Q4 2018 earnings report could impact Alphabet’s Q1 revenue. The corporation’s self-driving car Waymo has been a focus of the company’s ‘Other Bets.’ Chief financial officer(CFO), Ruth Porat, talked about plans for the vehicle’s recent launch in the US.

‘We're focused on expanding both the number of riders and the geographic reach around Phoenix. In addition, we're having conversations with a number of other interested cities. And we are continuing to explore applying our technology for logistics and deliveries and for personal use vehicles and for last mile solutions for cities,’ said Porat.

Waymo will also try to compete with other vehicle companies like Tesla by increasing production of the car in Detroit. Waymo’s performance as a self-autonomous automobile could have an effect on Alphabet’s Q1 revenue.

Alphabet’s Q1 earnings could depend on these three important factors. Investors will see if Google’s strength as a search engine and cloud service continue to grow.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.