Alphabet (GOOG, $1,248.99) crushes Q2 earnings expectations; announces $25 billion additional share buyback
Alphabet reported second-quarter earnings that beat analysts’ estimates. The parent company of Google also revealed its $25 billion additional stock buyback plan.
Alphabet’s adjusted earnings for the quarter came in at $14.21 per share, wee above the $11.30 per share expected by analysts surveyed by Refinitiv.
Total revenue of $38.94 billion also exceeded analysts’ estimate of $38.15 billion.
Even traffic acquisition costs of $7.24 billion for the tech giant were lower than the $7.27 billion expected, according to StreetAccount. On the other hand, Google reported advertising revenue of $32.6 billion for the second quarter, higher than the $28.09 billion of the year-ago quarter. Traffic acquisition costs incurred as a percentage of Google advertising revenues was slightly lower this year compared to the previous year’s quarter.
While cost-per-click on Google properties declined -11% year-over-year in Q2, paid clicks on Google properties surged + 28% over the same period.
Alphabet also said that its board of directors have approved a repurchase of up to an additional $25 billion of its Class C capital stock. During a call with analysts, CFO Ruth Porat indicated that the additional capital would go towards bolstering growth and acquisitions and investments.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
GOOG's RSI Indicator recovers from oversold territory
The RSI Oscillator for GOOG moved out of oversold territory on July 27, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 20 similar instances when the indicator left oversold territory. In of the 20 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 54 cases where GOOG's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on August 25, 2026. You may want to consider a long position or call options on GOOG as a result. In of 76 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GOOG advanced for three days, in of 352 cases, the price rose further within the following month. The odds of a continued upward trend are .
GOOG may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for GOOG turned negative on August 13, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at .
GOOG moved below its 50-day moving average on August 11, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for GOOG crossed bearishly below the 50-day moving average on August 17, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GOOG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.748) is normal, around the industry mean (5.889). P/E Ratio (17.227) is within average values for comparable stocks, (29.327). Projected Growth (PEG Ratio) (0.930) is also within normal values, averaging (30.758). Dividend Yield (0.002) settles around the average of (0.046) among similar stocks. P/S Ratio (9.425) is also within normal values, averaging (59.721).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 95, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. GOOG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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a holding company with interests in software, health care, transportation and other technologies
Industry InternetSoftwareServices
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