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Alphabet (GOOGL) Q1 Earnings Expectations

Alphabet Inc., the parent company of Google, will report earnings for the first quarter ended March 2020 on Apr 28, after market close. Analysts expect mixed results with the cloud sector expected to report strong revenue growth.
GOOGL revenues in Q1 expected at $33.3 billion, above the previous year sales of $29.48 billion. The market consensus for the earnings per share is 11.16 below the 11.90 reported the Q1 of 2019.

Google reported strong figures in Q4 2019. The vast majority of the Alphabet’s revenues still comes from advertising. The earnings per share (EPS) came in at $15.35, beating the expectations of $12.53. The revenue was at $46.08 billion below the market consensus of $46.94 billion. The costs for traffic acquisition came in at $8.50 billion.

Google in Q4 reported for the first time YouTube and cloud revenue.

YouTube generated $15.15 billion in ads revenue in the full year 2019, with $4.72 billion in the Q4. YouTube generated $11.16 billion in revenue in 2018, including $3.61 billion in the Q4 of 2018. YouTube TV subscriptions are included in Google’s other revenue segment. YouTube TV Paid subscribers were 2 million in 2019.

Alphabet’s cloud sector generated $8.92 billion in revenue in 2019, with $2.61 billion generated in Q4. The cloud business ended 2019 with a $10 billion annual run rate, which is up 53% from last year.
Google’s total advertising revenue was $37.93 billion in the fourth quarter, compared to $33.91 billion in Q3 and $32.63 billion in Q4 of 2018.

Download our Q2 Market Global Market Outlook

Google Technical Analysis

Google regains some of the lost ground after the coronavirus crisis sell-off and is trading today 1.29% higher at $1,274.59. The stock is over 27% higher since the March 23 lows at $1,007 and managed to regain the short term positive momentum as yesterday breached the 50-day moving average. 

On the upside, first resistance for GOOGL stands at $1,288 the daily high. Next hurdle will be met at $1,303 the high from March 6. A game-changer will be a break above the 100-day moving average at $1,328, which might attract a fresh wave of buyers. 

On the other side, immediate support for the stock stands at $1,257 the 50-day moving average. If GOOGL break below $1,257 might open the way for a move down to $1,205 the low from April 21. Further pressure might test the April lows at $1,075.  

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