Source: Golden Ten Data
Alphabet released its first-quarter earnings report after the US stock market closed on Thursday. However, different analysts have different views on the company's prospects.
Analysts predict a rebound in ad spending, cloud computing sales, and revenue from AI, but some analysts are also concerned about increased layoffs, global regulatory risks, and economic headwinds.
Brian White, an analyst at MonnessCrespihardt, said in a report last week: “We think,$Alphabet-A (GOOGL.US)$/$Alphabet-C (GOOG.US)$We are ready to take advantage of digital advertising trends to build a lasting cloud business and innovate in artificial intelligence. However, with an ominous regulatory environment, a sinister competitive environment, and uneven implementation, we believe the darkest days of the economic quagmire are yet to come. He maintained the stock's neutral rating.
Analysts surveyed by FactSet expect Alphabet's earnings per share to be $1.51 billion and revenue of $78.75 billion.
Various opinions led to this overall assessment: Wall Street expects Alphabet's ad spend this quarter to be better than the previous quarter due to the Summer Olympics and the US election, and advertising spending will continue to grow in the second half of the year. At the same time, the company will face a$Meta Platforms (META.US)$Fierce competition, sluggish brand ad spending, and weak YouTube growth have led to more video ad choices for merchants.
Mizuho analyst JamesLee said in a report last week: “According to our agency survey, Google's search advertising business is in line with consensus based on seasonal trends, and has even grown slightly.”
Jefferies analyst BrettThill believes that part of the uncertainty is due to speculation about a new share repurchase mandate and a new CFO to replace long-time CFO RuthPorat.
Angelozino, senior stock analyst at CFRAResearch, believes that the biggest risk may come from regulatory issues in the US and Europe.
The US Department of Justice lawsuit against Google's search distribution business and another lawsuit against Google's online advertising business are major concerns, not to mention European legislation aimed at creating a more competitive digital environment, including the Digital Markets Act and the upcoming EU Artificial Intelligence Act.
The advent of the artificial intelligence world is likely to disrupt Google's search business, and Google's parent company Alphabet is facing a$Microsoft (MSFT.US)$, OpenAI, and$Apple (AAPL.US)$The challenge.
editor/tolk