What's Going On With Google Parent Alphabet Stock Ahead Of Earnings?

Zinger Key Points
  • BofA Securities releases a first-quarter earnings preview on Alphabet on Thursday. 
  • There is upside potential to the consensus revenue estimates resulting from YouTube strength, stability and in search.

Alphabet Inc. GOOG GOOGL shares are trading slightly higher. BofA Securities released a first-quarter earnings preview on Alphabet on Thursday. 

The Details: BofA Securities saw upside potential to the consensus revenue estimates resulting from YouTube strength, stability and potential upside in search, as well as the leap year and Easter benefits to the quarter. According to data from Benzinga Pro, the Street anticipates Alphabet reporting quarterly revenue of $78.571 billion. 

BofA Securities also noted limited job openings at Alphabet which suggests that costs are still being managed.

Google recently announced a new round of job cuts that will affect the real estate and finance departments, according to reports. A company spokesperson indicated the measures are part of efforts initiated in the latter half of 2023 to streamline operations and eliminate redundancy. 

Alphabet is set to report its first-quarter financial results after the market close on April 25 with quarterly earnings of $1.51 per share, according to estimates from Benzinga Pro

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GOOG Stock in the Future: While past performance is not a direct indicator of future results, investors should have an idea of a stock's historical growth rate and systemic risk.

Alphabet has grown 20.23% over the past five years compared to 11.55% growth in the S&P. Alphabet has a beta of 0.98, suggesting low volatility when compared to the S&P 500.

Alphabet operates in the Communication Services sector and has a forward P/E ratio of 23.09, which is above the S&P 500 average of 23.04. A higher ratio suggests investors are paying a high price today for expected future returns.

Growth stocks can generate high returns over the long term but can also be more volatile and considered riskier. Conversely, a lower ratio generally indicates more stable revenues and less expected volatility.

For access to advanced charting and analysis tools and stock data, check out Benzinga PRO. Try it for free.

GOOG Price Action: According to Benzinga Pro, Alphabet shares closed Thursday up 0.37% at $157.46.

Photo: Shutterstock

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