Earnings preview: will AI drive Google numbers?
Alphabet, the Google parent company, is due to report earnings after the Wall Street close this evening. It is forecast to post earnings of $1.34 per share, on revenue of $72.82 billion.
It’s likely to be dominated by AI-related announcements. Investors need to know how the group can drive incremental monetisation through generative AI search. Ad revenue will be key. Google ad revenue is expected to reach $57.45bln, while YouTube ad revenue is seen at $7.41bln by analysts.
(Video Transcript)
Alphabet
One of the big tech companies is reporting after the bell on this Tuesday on Wall Street is Alphabet. The Google parent company is forecast to post earnings of a dollar 34 per share on revenues of 72.82 billion. Now, investors will be attentive to any Al-related announcements. That certainly seems to be what's generating all the interest in these stocks at the moment. They would like to know how the group can drive incremental monetization through generative AI search ad revenue will now be key.
Google & YouTube
Google ad revenue is expected to reach $57.45 billion, while YouTube ad revenue is seen at $7.41 billion by analysts. Cloud growth is another point of interest to watch out for after the bell this evening, when it produces these numbers. In the previous quarter, Google Cloud turned profitable, and for the very first time, revenue in this division was forecast at $7.83 billion.
Share price chart
So take a look at the share price chart, which has seen some interesting moves from the highs that we had during the real ramp-up during up through the 12th of November 2021, we were at 154.62. Then came this 46% slump all the way down to the lows seen last November. But since then, there has been a lot of interest in the stock. And now we're trading between this band of support at $115.84. And on the top side here, the resistance hit back on the 8th of June at 129.50 stock.
It's all sessions on the platform, and you can trade this after the bell this evening when it produces its earnings. It'll start today's trade at 122.28. For more videos from a strategy TV, join us on Twitter at IG.com and subscribe to our YouTube channel.
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