Alphabet Inc.’s growth is slowing, and analysts don’t have a clue as to why because executives aren’t talking.
“A concern for us is the lack of clear communication from management into the cause of the faster-than-expected top-line deceleration,” SunTrust Robinson Humphrey analyst Youssef Squali wrote in a note, while reducing his price target on Alphabet stock to $1,325 from $1,350. “The lack of visibility or a clear explanation into the revenue deceleration has left us more cautious than before.”
“We believe ‘breaking up the FAANGs’ will be a key issue during the 2020 presidential election,” Needham analysts wrote. “We foresee Alphabet taking action well before any elected official mandates how many pieces they must create.” What to expect Earnings: On average, the 39 analysts surveyed by FactSet expect Alphabet to post earnings of $11.10 a share, down from the $11.33 a share expected at the beginning of the quarter . In the second quarter a year ago, Alphabet reported earnings of $4.54 a share due to a large fine from Europe; without that charge, earnings would have been $11.75.