Alphabet Inc. (GOOGL), headquartered in Mountain View, California, is a holding company, the largest of which is Google, renowned for its dominance in the worldwide search engine market. Valued at $2.36 trillion by market cap, the company has evolved from a search engine provider to offer cloud computing, healthcare, internet services, and various other products and services. The technology giant is expected to announce its fiscal second-quarter earnings for 2024 on Tuesday, July 23.
Ahead of the event, analysts expect GOOGL to report a profit of $1.84 per share on a diluted basis, up 27.8% from $1.44 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. During the previous quarter, GOOGL announced its first-ever dividend of $0.20 per share and announced an additional buyback worth $70 billion.
For fiscal 2024, analysts expect GOOGL to report EPS of $7.60, up 31% from $5.80 in fiscal 2023.
GOOGL stock has outperformed the S&P 500’s ($SPX) 16.8% gains on a YTD basis, with shares up 35.3% during this period. Similarly, it outshined the S&P 500 Communication Sector SPDR’s (XLC) 19.7% gains over the same time frame.
On Apr. 26, GOOGL’s shares closed up more than 10% after reporting Q1 revenue ex-TAC of $67.59 billion, beating the consensus estimates of $66.07 billion.
On Apr. 25, GOOGL reported its Q1 results. Its net income and revenue were $23.66 billion and $80.54 billion, respectively. Its EPS stood at $1.89, beating the consensus estimates of $1.49. GOOGL shares closed down more than 1% on the day the results were released but have been on an uptrend since then.
GOOGL’s overall performance can be attributed to its strong Q1 results and the launch of several AI products and features at the Google I/O event. The company has come up with AI-powered search which will use generative AI tools to enhance the search experience and is incorporating Gemini AI into its various products.
Analysts’ consensus opinion on GOOGL stock is bullish, with a “Strong Buy” rating overall. Out of 44 analysts covering the stock, 34 advise a “Strong Buy” rating, three have a “Moderate Buy” rating, and seven recommend a “Hold.” The average analyst price target for GOOGL is $195.66, indicating a 3.5% potential upside from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
