“We believe the darkest days of this downturn are ahead of us,” Monness Crespi Hardt analyst Brian White warned in an Oct. 18 note.
“Worsening market conditions will likely weigh on ad revenues,” Insider Intelligence analyst Evelyn Mitchell told MarketWatch, noting Snap’s woeful guidance on Thursday. “But Google’s foundation in search advertising, a tried-and-true lower funnel tactic, puts it in a strong position and [gives it] an edge over other ad-reliant competitors, like Meta, Snap and Twitter.”
What to expect Earnings: Analysts on average expect Alphabet to report earnings of $1.27 a share, up from $1.21 a share a year ago. Analysts were projecting $1.39 a share at the end of June. Stock movement: Alphabet’s stock has dropped 30% so far this year, while the S&P 500 index SPX, +1.19% has declined 23%. Shares of Alphabet are down 11.5% since the company last announced quarterly results July 26.
Google’s dominance in search — which, ironically, continues to cause it headaches with regulators and lawmakers — and its diversified technology portfolio make it less susceptible to digital-ad disruption, according to RBC Capital Markets analyst Brad Erickson, who rates the stock as outperform, with a target price of $135.