Earnings season is upon us, and Google’s parent company, Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG), will report its first-quarter earnings on April 26. The overall consensus outlook is positive and it could help GOOG stock move higher if the numbers are better than expectations.
I have always loved GOOG stock and believe it is a long-term buy. However, the stock is down more than 10% over the past month and has gone from $2,800 to an opening price of $2,500 today. But this dip is a good chance to get your hands on the stock.
It’s not just me. Several Wall Street Analysts are also bullish on the stock before the big tech reports earnings. Analysts expect the company to post revenue of $68 billion and earnings of $26.11 per share. Stephen Ju, a Credit Suisse analyst has an “outperform” rating with a price target of $3,450 for the stock. The analyst believes Q1 results will exceed consensus again. Citi analyst Ronald Josey has a buy rating for the stock with a target price of $3,500.
Equities research analysts at KeyCorp anticipate the company to post earnings per share of $24.17 for this quarter and an EPS of $24.71 for the second quarter. In the fourth quarter, the company reported a revenue of $75 billion and an EPS of $30.69. It also announced the much-talked-about stock split of 20-for-1. The company is going to split stock on July 18, and there is a lot of anticipation around this event.
Advertising continues to remain a core business for Google, but let’s not forget that its cloud operations are still in the growth stage, and there is a massive opportunity for the company there.
I am bullish on GOOG stock and believe the company will report another smashing quarter and it will take the stock upwards. It is important to look at the stock beyond the stock split and buy GOOG stock for the underlying business and fundamentals. The company is steadily growing and has immense potential to grow in the coming years.
On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
