Alphabet Earnings Overview and GOGGL Stock Analysis
Alphabet is likely to grow quickly in the first quarter, but this growth is likely to slow down a lot by the end of 2022. How will the stock market react to GOGGL?
When will Alphabet release its first quarter 2022 results?
Alphabet will share its first-quarter results on Tuesday, April 26, after U.S. markets close.
This week, the US earnings season is in full swing, and Big Tech is the most important company event. Alphabet and Microsoft are both due to report on the same day. Meta will report on Wednesday, and then Apple and Amazon will finish up. Thursday
Big Tech companies’ stock prices are likely to be put to the test during earnings season, and the sector faces a lot of challenges.
Overview of Alphabet’s results for the first quarter of 2022
Wall Street thinks that Alphabet’s first-quarter 2022 revenue will rise by 23 percent from the same time last year to $68.1 billion, and that its diluted EPS will rise by more than 20 percent to $25.99.
Alphabet makes most of its money and almost all of its profits from advertising on Google’s many services. These services include Google’s search engine, YouTube, and apps like Maps and Shopping, which are not owned by Google. We’ve seen social media platforms, which used to take up a lot of a company’s advertising budget, run into trouble as competition for airtime gets tougher and Apple’s changes to its privacy policies make it harder for them to target ads. and keep track of what people do online, but Google has been able to stay strong thanks to its many different services and its role as a gateway to the internet.
Analysts think that Google Services, which makes most of its money from ads, will see a 22 percent increase in revenue from the same time last year to $62.6 billion in the first quarter. Even though the growth will be strong, it will be the slowest in over a year. This is partly because 2021 was such a strong year. Because of this, growth in sales is expected to slow in the second trimester to less than 16 percent. will get 22 percent more money in the first quarter than it did the year before, or $62.6 billion. Even though the growth will be strong, it will be the slowest in over a year. This is partly because 2021 was such a strong year. Because of this, growth in sales is expected to slow in the second trimester to less than 16 percent. will get 22 percent more money in the first quarter than it did the year before, or $62.6 billion. Even though the growth will be strong, it will be the slowest in over a year. This is partly because 2021 was such a strong year. Because of this, growth in sales is expected to slow in the second trimester to less than 16 percent.
Google Cloud is still not a big player in the market for cloud computing. Statista says it has a 10 percent share of the global market, which makes it the third-largest player. However, Microsoft Azure, with 21 percent, and Amazon Web Services, which reportedly has a third of the market, are bigger than it. Still, Google Cloud has gotten a bigger piece of the pie in recent years, and it’s the part of Alphabet’s business that’s growing the fastest. Analysts expect the unit’s revenue to go up by 42 percent from last year to $5.8 billion. Even though last year was hard to compare to, the demand for cloud computing is thought to be more stable than some of the areas that Big Tech is focusing on, like online advertising or hardware sales. Still, it isn’t immune to the weaker economic outlook, and analysts think that in the second quarter, its sales growth will slow.
The biggest problem with Google Cloud, though, is that it is still not making money, while Amazon and Microsoft are making a lot of money from their cloud computing units. In 2021, Google Cloud had an operating loss of more than $3 billion, and 2022 is likely to be the same.
The markets will pay close attention to what the board says about the future to see how confident they are about the rest of this year. Its sales and earnings per share (EPS) should continue to grow by more than 10% in the second quarter, but not as much as in the first.
All of the big tech companies’ growth will slow in 2022 after a record-setting year in 2021. Alphabet is expected to have impressive growth of over 17 percent in 2022, but its earnings per share (EPS) growth is expected to be only 3.7 percent. This is in contrast to 2021, when its EPS grew by more than twice as much.
What’s next on the stock market for GOOGL shares?
Alphabet shares were very unstable in 2022, and the stock market saw wild swings that peaked at $3031 in February, which was the all-time high. But the stock closed yesterday at $2496, which was its lowest level in nine months.
This happened after the 200-day moving average, which gave a bearish sign when it broke above the 50-day metric last month, crossed above the 100-day moving average last week, indicating that the stock could fall further on the stock market. This is supported by the fact that the RSI is still in the “bearish” zone and trading volumes have been pretty stable over the past 30 days. If this is true, the stock could fall back to where it was in June of last year, when it was hard for it to break through a resistance level at $2463. A move below could make $2400 possible.
Alphabet (NASDAQ:GOGGL) Daily Chart
Alphabet shares traded easily above all three moving averages for the 18 months leading up to the end of 2021, but it was harder to stay above them in 2022. Before it can aim for the April high of $2859, it needs to retake the moving average SMA 50-day SMA at $2682, the 100-day SMA at $2751, and the 200-day SMA at $2770.
Only one of the 52 brokers who cover GOGGL stock isn’t sure about Alphabet’s value. They think it will go up by nearly 38% over the next 12 months and reach a much higher all-time high on the stock market, with an average target price of $3466.