Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Alphabet (Google) share price: what to expect from Q2 results?

Between better cloud revenue expected and a continued hit to advertising returns, Alphabet’s Q2 performance will be scrutinised on whether the worst is, indeed, behind it.

Video poster image

When will Alphabet release Q2 earnings results?

Google’s parent company, Alphabet, will be reporting second-quarter (Q2) 2020 earnings after the US market close on Wednesday, 30 July. This will be for the April to June 2020 period, with after-hours trade expected to capture some of the early reactions.

What to expect with Alphabet’s Q2 2020 earnings performance?

Alphabet’s Q2 earnings per share (EPS) is expected at a weaker $8.23 according to Refinitiv polls, whereupon materialisation, would mark a continued slump from the $9.87 registered for Q1. This may also be a second consecutive quarter of sub-$10 EPS for Alphabet after having climbed above the level since Q2 2018. The good news is perhaps the fact that earnings are expected to rebound after this Q2 2020 trough, although, Alphabet’s share price had appeared largely unperturbed thus far, with the surge to a fresh all-time high above $1500 this month.

Q2 2020 revenue for Alphabet is expected to slump in the upcoming release, falling by 4.1% year-on-year (YoY) to $37.37 billion. Net income meanwhile will be due for a steeper drop of 42.7% to $5.7 billion, according to Refinitiv consensus. Mixed fortunes may be expected across the various segments in the upcoming earnings release as a result of the lingering Covid-19 implications on the global economy. Specifically, cloud revenue may be one to excel on account of the telecommuting trend and sustained stay-home situation for most of Q2. A build-up of the pipeline also appears to also be the case, although how well Alphabet’s Google may be able to monetise in the coming quarters remains to be seen.

On the flipside, advertising revenue is expected to continue taking a hit in Q2 with businesses, particularly tourism-related companies and the likes, lowering their demand within this segment. As with Q1, YouTube is widely expected to buck the wider trend and see growth on the increased engagement, but it may not be enough to offset the overall ad revenue weakness.

How to trade Alphabet’s earnings release?

Alphabet stock price had risen more than 7% on the day after its Q1 2020 earnings release, despite missing earnings estimates and beating only with sales. Investors had been heartened by the management’s view that the sharpest hit to revenue may have passed. That said, the recent resurgence in Covid-19 cases, particularly across the US where Google draws almost half of its revenue, will be one to watch for management’s address.

Alphabet’s latest share price is seen just above $1500, sitting near the top end of its 52-week range after pulling back slightly from the all-time high. Consensus target price for Alphabet remains relatively elevated at $1690.51 on Refinitiv, with recent recommendations leaning towards the higher end of the spectrum. A beat here in terms of earnings and sales may see to elimination of this event risk and enable prices to continue the climb. Vice versa, disappointments or weak outlook could jeopardise prices, although dips may be kept shallow here given the overall expectation for Alphabet to retain strong long-term growth potential.

Alphabet (Google) share price technical analysis

Alongside US FANG stocks, Alphabet had seen share price retrace losses from the initial Covid-19 hit. Prices had kept to an uptrend since the late-March trough, breaking above the $1500 first in early July. This resistance-turned-support had mostly curbed downsides as prices oscillate around $1530 since mid-July, but any dip below with the upcoming earnings reaction can see to a pause. Broadly, however, prices retain a strong long-term uptrend.

Alphabet chart Source: IG charts
Alphabet chart Source: IG charts

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

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. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Look closer this US earnings season

Discover opportunities with using our award-winning technology* and range of educational resources.

  • Get expert analysis on upcoming announcements
  • Set automated alerts to never miss an opportunity
  • Choose from 10,000+ shares with our stock screener

* Winner for Mobile Platform / App based on the Investment Trends 2018 Singapore CFD & FX Report based on a survey of over 4,500 traders and investors. Awarded the Best Online Trading Platform by Influential Brands in 2019 and 2022.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

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

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

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.