Alphabet Inc GOOG GOOGL aka Google, is set to unveil its fourth-quarter earnings on Jan. 30. The company is expected to report $1.59 in EPS and $85.22 billion in revenues after market hours.
Founded in 1998 by Sergey Brin and Larry Page, Google stands as a $1.9 trillion American search engine and Alphabet Inc. subsidiary. The technology giant plays a pivotal role in the online experience of over 70% of global internet users, exhibiting dominance across various technological domains.
Google’s ventures span diverse arenas such as artificial intelligence, online advertising, search engine technology, cloud computing, computer software, quantum computing, e-commerce, and consumer electronics.
A Look into Google’s Investment Prospects
Google’s Investment Prospects
Google offers an enticing investment opportunity with robust financials. Impressive net income expansion fueled by strong revenue growth and expanded margins underscores the company’s financial strength. Its core businesses such as Google Search and YouTube thrive, while Google Cloud steadily gains significant market share.
Despite facing competition, Google leverages its dominant technology assets and commitment to shareholder returns, enhancing its investment appeal. Strategic balance sheet cleanup has led to improved operating income, notably from core services and positive impacts from Google Cloud.
Google’s DeepMind division excels in artificial intelligence, further solidifying the company’s technological prowess. Notwithstanding commercialization challenges, Google’s underlying language models maintain competitiveness. The decision to segregate Google DeepMind + Research into a separate corporate costs division underscores the company’s significant AI investment. Aggressive stock repurchases signify Google’s focus on augmenting shareholder returns.
The company’s dedication to open-source projects reinforces its technological acumen. Google’s robust financials, strategic initiatives, and leadership in cutting-edge technologies position it as an appealing long-term investment prospect.
An Insight into Google Analysts’ Focus & Consensus Ratings
Insights into Google Analysts’ Focus & Consensus Ratings
Analysts will scrutinize Google’s positioning in the AI space and its ability to navigate potential threats. Although ChatGPT poses a substantial competitive risk, Google’s core AI assets remain market-leading and competitive.
The company recently experienced a ~3% cut in its employee count due to layoffs, with indications of further layoffs in 2024, signifying a strategic move. Evaluating the impact of these layoffs on the company remains a focal area for analysts.
Known for its strong cash flow, Google has consistently emphasized shareholder returns. Analysts will closely monitor the company’s ability to continue utilizing its cash flow in driving substantial shareholder returns through stock buybacks.
Ratings & Consensus Estimates: The consensus analyst ratings on Google stock currently stand at a Buy, with a target price consensus of $131.85.
GOOG Price Action: Google stock concluded trading at $153.79 on Jan. 26.