GET DAILY SIGNALSAlphabet (GOOGL, $1,296.20) misses revenue estimates; shares decline -5% in after-hours
Alphabet's revenue for the first quarter fell short of expectations, causing the tech giant's shares to lose -5% during after-hours trading Monday.
Google’s parent company reported revenue of $36.34 billion for the quarter, compared to the $37.3 billion expected by analysts polled by FactSet.
Decelerating growth in advertising was a headwind to the company's revenue. Paid clicks on Google properties grew +39% year-over-year for the quarter, which was much slower than the fourth quarter’s + 66% and third quarter’s + 62%.
However, total revenue was still +17% higher compared to the year-ago quarter, as mentioned by Ruth Porat, Chief Financial Officer of both Alphabet and Google. The growth came in at +19% on a constant currency basis. Porat emphasized mobile search, YouTube, and Cloud as major drivers of growth. The company’s hardware and cloud businesses (included in Google’s “other revenues” segment), saw a +25% year-over-year growth to $5.45 billion. Porat indicated that Youtube clicks continued to grow, albeit at a slower pace compared to the same quarter in the preceding year.
Alphabet’s earnings of $11.90 per share managed to beat analysts’ estimates of $10.60 per share.
But net income of $6.66 billion for the period fell sharply from the year-ago quarter’s profit of $9.4 billion.
The European Commission had slapped a $1.7 billion fine on Alphabet as a settlement for alleged anti-competition practices in the online ad business. Excluding the fine, the company’s operating income rose +26% to $8.31 billion.
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.
GOOGL's Stochastic Oscillator is remaining in oversold zone for 15 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where GOOGL's RSI Indicator exited the oversold zone, 13 of 22 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 59%.
Following a +1.98% 3-day Advance, the price is estimated to grow further. Considering data from situations where GOOGL advanced for three days, in 228 of 338 cases, the price rose further within the following month. The odds of a continued upward trend are 67%.
GOOGL 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 Momentum Indicator moved below the 0 level on October 16, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on GOOGL as a result. In 48 of 78 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 62%.
The Moving Average Convergence Divergence Histogram (MACD) for GOOGL turned negative on October 16, 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 48 similar instances when the indicator turned negative. In 26 of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at 54%.
GOOGL moved below its 50-day moving average on October 16, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for GOOGL crossed bearishly below the 50-day moving average on October 23, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 10 of 15 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 67%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GOOGL declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 62%.
The Aroon Indicator for GOOGL entered a downward trend on October 27, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 21 (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 36 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 63 (best 1 - 100 worst), indicating steady price growth. GOOGL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 70 (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 (5.595) is normal, around the industry mean (0.974). P/E Ratio (14.126) is within average values for comparable stocks, (-39.046). Projected Growth (PEG Ratio) (1.225) is also within normal values, averaging (17.274). Dividend Yield (0.003) settles around the average of (0.979) among similar stocks. P/S Ratio (9.416) is also within normal values, averaging (71.888).
The Tickeron PE Growth Rating for this company is 90 (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.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a holding company with interests in software, health care, transportation and other technologies
Industry InternetSoftwareServices
Advertisement