Alphabet is all set to announce its revenues in the earnings call on Wednesday, and Wall Street and retail investors will carefully scrutinize the business income. Google stock (NASDAQ: GOOG) had a phenomenal run to $350 on the heels of the earnings call. Several retail traders and institutional funds accumulated GOOG in April and are already in profit.
Google stock has now hit its yearly high, and the risk of heading back in value remains higher. However, the April 29th earnings call could be its saving grace as revenue ‘money talks’ louder. Now that the market has already bought into the revenue call anticipation, what will decide the barometer of success next? How should you read the earnings call to understand if Alphabet is on the right track? Let’s find out in this article!
Also Read: Should You Buy Google Stock Now? (GOOG)
Google Stock: This Is What Will Be the Barometer of Success in the Earnings Call
The final countdown for the Alphabet’s earnings call is exactly 24 hours from now. There are high expectations on the eve of the revenue call, which can make or break GOOG. Below are the 2 barometers to closely watch on Wednesday.
- Analysts Expect Revenues of $106.88 Billion and EPS of $2.68
Wall Street needs a clear print with analysts estimating that Alphabet’s revenues could hit $106.88 billion and EPS of $2.68. If the earnings call shows the numbers below this, then Google’s stock would be in jeopardy. A sell-off would be on the cards, which could send GOOG into a tailspin. If the revenues go above $106.88 billion, then Alphabet has exceeded market expectations. This would make the equity remain on the greener side of the spectrum.
2. The 50% Cloud Growth
The market is closely monitoring Google’s Cloud services and expects a 50% year-over-year growth. This means that it should beat its previous growth of 48%. Cloud services are among Alphabet’s most profitable ventures that can bring in revenue. The $185 capital expenditure on AI will signal weakness if the Cloud enterprise falls below 50%. The investment will begin to look like a liability, not an asset. Google’s stock prospects stand on this very thin line.
