Alphabet Earnings: Can Cloud, AI Progress Make Up for Massive Ad Revenue Slowdown?

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Alphabet Inc Class A Notícia

Alphabet Inc Class C

Stocks Analysis by Investing.com (David Wagner) covering: Alphabet Inc Class A, Alphabet Inc Class C. Read Investing.com (David Wagner)'s latest article on Investing.com

Expectations are high, and the stock has just set a new record, which implies that the company has no room for error.

The company recently reached a new all-time high of $161.10 on Wednesday, and its stock boasts impressive gains - up 14% year-to-date and a staggering 54% year-over-year.Should we expect a pleasant surprise from Alphabet's results this Thursday? However, in this regard, it seems pertinent to point out that Alphabet has exceeded EPS and sales expectations for the last 4 consecutive quarters.While this does not guarantee anything for the results expected today, it is nonetheless a factor giving cause for optimism.Beyond EPS and sales data, investors will be particularly interested in advertising revenues, which continue to account for the vast majority of the company's income, notably via Google and YouTube.

This is a particularly sensitive point, as this chatbot and others are turning Internet users away from Google search. Analysts, for their part, are a little more optimistic, but their average target of $167.23 translates into a minimal potential upside of +3.8%.Further upside potential for the stock would therefore appear to be limited unless tonight's results come as a positive surprise.Both analyst estimates and valuation models suggest the company's current share price reflects fair value.

 

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