For investors in Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), it’s been a rather rough month. Shares of the online search giant have given up more than 13% over this time frame. However, with investors looking toward the upcoming Alphabet earnings date, sentiment has shifted. Today, GOOGL stock is up more than 2% on some bullish anticipation.
Earnings season typically provides a surge in volatility coinciding with options activity. Accordingly, stock prices can swing wildly before and after earnings. In the case of Alphabet, a stock that’s generally a slow mover given its size, the days and weeks around earnings are often the most interesting for investors looking for reasons to get in or out of such names.
As it happens, Alphabet’s upcoming earnings are expected to be released tomorrow, April 26. Accordingly, investor anticipation around what these results will hold appears to be materializing. Today, most of this anticipation appears to be bullish.
Let’s dive into what investors can expect from Alphabet’s Q1 earnings.
What to Expect on Google Earnings Date
As many in the market are well aware, it’s a tough time to be an investor right now. A range of macro headwinds are raging right now. From inflation to higher interest rates and continued Covid-19 concerns, there’s a lot to unpack in this market.
However, it appears the outlook for Alphabet ahead of its earnings is positive. Much of this strong sentiment appears to be tied to what’s expected to be strength in the company’s cloud segment.
Google’s cloud segment is still the growth engine that drove this stock forward in recent quarters. Many analysts and market pundits appear to agree that this business is relatively economically insensitive. Accordingly, for those banking on the future of the economy, there’s a lot to like about how Alphabet is positioned right now.
Others suggest that Alphabet will likely perform well during this earnings call due to less susceptibility to Apple’s (NASDAQ:AAPL) privacy changes than peers. Less sensitivity to macroeconomic factors, with most of the company’s revenue generated in Western nations, is also seen as a strength.
I have to agree. Alphabet’s core search business is really the crown jewel in the global digital advertising market. Until that changes, I expect continued solid results this quarter.
Alphabet is expected to post $25.60 in earnings per share (EPS) for this past quarter, up 15% year-over-year. I think a beat is very likely. However, investors will have to wait and see the extent to which the company will outperform the expectations of the market.
On the date of publication, Chris MacDonald 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.
