Alphabet Inc. (NASDAQ:GOOG) Earnings After The Bell
Earnings season is hitting the peak of its excitement with 3 out of the 4 FANG stocks reporting this week. The market has had been responding relatively positively to Q2 earnings thus far with the S&P 500 hitting new all-time highs today. Alphabet GOOGL AKA Google, the search engine that runs the internet for 90% of humans, is reporting its earnings after the bell Thursday, July 25th.
GOOGL has been a relatively big mover on earnings reports, with the last 6 reports having a 4.5% average price impact. Sell-side analysts are estimating an EPS of $11.50, which would represent an over 2% decline. GOOGL has beaten that last for EPS estimates by double-digit percentages so it wouldn’t surprise me if this upward surprise trend continued.
Revenues are estimated at $30.9 billion for Q2, which would illustrate a 17.8% topline expansion. Revenue growth is GOOGL investors’ biggest concern with its most recent deceleration having a significant adverse effect on the company’s share price.
Changes in paid clicks is also a key metric to evaluate when examining Alphabet’s 2ndquarter 10-Q. This quarter is expected to see a 38% increase in paid clicks on Google properties compared to Q2 last year. The big miss on this metric last quarter was one the catalysts that led to the sharp stock price decline.
Google has been under fire since its Q1 earnings report, which illustrated a deceleration in advertising revenue. The plateauing ad sales leave the other business segments to pick up the slack. Google has a big bet on its cloud computing segment, which some analysts are predicting could bring anywhere from $17-$20 billion in annual revenue by next year.
While looking at Alphabet’s 2nd quarter results watch for a topline beat as well as a beat in YoY paid clicks growth, both of which would ease investors’ concerns about slowing ad revenue.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 1,185.96.
The projected lower bound is: 1,089.90.
The projected closing price is: 1,137.93.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 51.7722. This is not an overbought or oversold reading. The last signal was a sell 5 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 54.36. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 32 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -14. This is not a topping or bottoming area. The last signal was a sell 5 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 0 period(s) ago.
Rex Takasugi – TD Profile
ALPHABET INC C closed down -8.400 at 1,137.810. Volume was 9% above average (neutral) and Bollinger Bands were 18% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,143.79 1,114.33 1,115.49
Volatility: 13 28 35
Volume: 1,229,634 1,452,051 1,630,514
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
ALPHABET INC C is currently 2.0% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of GOOG.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on GOOG.O and have had this outlook for the last 23 periods.