GOOGL Earnings preview | Q1 2022

GOOGL Earnings preview | Q1 2022
Analysis
Ahura Chalki
Author:
Ahura Chalki
Published on: 26.04.2022 16:22 (UTC)
Post reading time: 1.66 min
192

Different technical and fundamental approaches


Aftermarket close, Alphabet Inc. (Google) will publish its earnings report on 26 April 2022. The information will be for the fiscal Quarter ending Mar 2022. 


The consensus EPS estimate is pegged at $25.63. Based on 12 analysts, Zacks Investment Research expects $25.7 EPS for this Quarter. Market expectation for Q1 EPS is 2.5% lower than the same quarter year ago ($26.29). Revenue expectation is seen at $55.94 billion, unlike EPS, showing the progress of 22.7% from the year-ago reported number. NASDAQ estimates for this quarter EPS is $25.49 per share in its upcoming report, which represents a year-over-year change of -3%.


Alphabet`s most revenue drivers

Google`s growing investments in AI are likely to increase the Alphabet`s income from its Search engine, Ad, YouTube & Cloud Momentum. The search engine has been the key catalyst for the company`s income. At the same time, while its search engine drove the traffic, Google always was the ad. market leader with the highest revenue among competitors. Lately, Google has been working on its search engine, and reports indicate that new updates have more effect on its mobile version, making it possible to sell more ads. 


Another investment benefit for Google in AI is creating a technology that boosts customer engagement on YouTube. Now YouTube Shorts is also expected to increase the company`s benefit. 


And finally, high-income cloud business. With the latest changes in the business world and even lifestyle, the interest in using cloud services has increased. In the previous quarters also this service used to help the company`s overall income. 


Besides the most profitable business, we should not forget about Android, Meet, Waymo, Cybersecurity & Google TV. 


Technical overview

While fundamentally, investors are generally positive, and Zacks rating is #3 (Hold) for Alphabet share, technical indicators in main timeframes remain bearish. Price moves in a clear downtrend, under 200 DMA at $2,783 and critical pivot at $2,684. A positive report may stop or slow down the bears, but bulls have no place in the charts until the price is seen above the key pivot at $2,684.


 


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