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.
GOOG broke above its upper Bollinger Band on April 26, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 50 similar instances where the stock broke above the upper band. In of the 50 cases the stock fell afterwards. This puts the odds of success at .
The 10-day RSI Indicator for GOOG moved out of overbought territory on April 29, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 47 similar instances where the indicator moved out of overbought territory. In of the 47 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 70 cases where GOOG's Stochastic Oscillator exited the overbought zone, the price fell further within 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 .
The Momentum Indicator moved above the 0 level on April 26, 2024. You may want to consider a long position or call options on GOOG as a result. In of 94 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for GOOG just turned positive on April 26, 2024. Looking at past instances where GOOG's MACD turned positive, the stock continued to rise in of 46 cases over the following month. 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 354 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 320 cases where GOOG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 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 92, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (6.868) is normal, around the industry mean (14.520). P/E Ratio (26.982) is within average values for comparable stocks, (49.308). Projected Growth (PEG Ratio) (1.637) is also within normal values, averaging (3.441). Dividend Yield (0.000) settles around the average of (0.026) among similar stocks. P/S Ratio (6.477) is also within normal values, averaging (111.300).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a holding company with interests in software, health care, transportation and other technologies
Industry InternetSoftwareServices