Will Alphabet’s Q3 Results Reassure Tech Investors?
Spreadex | Oct 18, 2018 11:31
While Google-parent didn’t have a flawless start to 2018, dipping under $1025 a few times in spring, by late May it was building up a nice little head of steam, eventually hitting an all-time high of $1298.75 towards the end of July.
Yet since then the stock has tumbled from that peak, part of a wider decline that has also seen its fellow FAANG stocks struggle. Having struck $1075 in mid-October, Alphabet (NASDAQ:GOOGL) Inc now sits at a current trading price of $1130.05.
The final push to that aforementioned record high was July’s second quarter update. What’s interesting is that the headline could have been the 9% drop in net income to $3.2 billion following the EU’s $5 billion fine for ‘serious illegal behaviour’ when trying to ‘cement its dominant position’ in search.
Instead investors focused on the 26% surge in revenue to a better than forecast $32.66 billion, alongside the news that excluding fines net income would have been nearly $8.3 billion. Advertising revenue rose 24% to $28.1 billion, with a 58% surge in paid clicks on Google properties year-on-year helping counter the 22% decline cost-per-click.
In terms of Thursday’s Q3 statement, analysts are expecting Alphabet to post a 23% rise in revenue to $34.04 billion, alongside a 9% rise in earnings to $10.45 per share.
Alphabet Inc has a consensus rating of ‘Buy’ alongside an average target price of $1322.92.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved."
Get The App
Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.