Google's Strong Earnings Amid Antitrust Battle

Google's parent company, Alphabet Inc., is currently embroiled in an antitrust battle with the Justice Department, but investor attention is focused on its upcoming ad-rich earnings report.

Earnings Expectations

• Earnings: Analysts tracked by FactSet anticipate Alphabet to report earnings of $1.46 per share, a significant increase from $1.06 per share the previous year.
• Revenue: The FactSet consensus predicts total revenue of $76 billion, up from $69.1 billion in the previous year.

Positive Stock Movement

Alphabet's stock has performed exceptionally well this year, soaring 55% with most of the gains achieved in the past six months. In comparison, the S&P 500 index has only experienced a 10% increase in 2023.

Analyst Sentiment

Among the 57 analysts tracked by FactSet covering Alphabet's stock, 47 have buy ratings, while 10 have hold ratings. The average price target is set at $152.08.

Digital Ad Spending Outlook

Investors are particularly interested in the progress of digital ad spending at Alphabet, based on reports from industry insiders. According to Goldman Sachs analysts, there are signs of improvement. They expect search and YouTube revenue to "re-accelerate" in the third quarter. Furthermore, they highlight Alphabet's efforts to right-size its cost structure for long-term success.

In conclusion, despite ongoing antitrust challenges, Alphabet is expected to deliver impressive earnings growth. The company's position as an AI leader and its ability to adapt to changing consumer and enterprise computing trends further contribute to its positive outlook.

Read: Meta Earnings Should Show Continued Ad Dominance - But a New Apple Battle Looms