With a week full of earnings results ahead, is Google going to surprise the market and the analysts with better than expected results
Google Inc. (GOOGL) is set to release their first-quarter results this coming Thursday. While Google is still the market leader in Internet search, analysts are not feeling confident due to the company’s less than sterling performance over the past year. Estimates are putting earnings per share (EPS) at $6.60 and revenue at $17.52 billion.
Speculation around the reason for the decline is due to Google’s shift from high margin search to smaller margin products including display advertising and other non-advertising ventures as well as YouTube, Google Wallet and Google Flights.
Google stock has seen a decline of nearly 2 percent over the past year and when taken in relation to the 19% gains by the Nasdaq for the same period, there is reason for investor concerns, Added to this, news last week that the European Commission has finally formally charged Google with antitrust charges rattled investors cages although cases like these can takes years to conclude.
Despite all speculation around their earnings and declines in revenue, Google still retains 88% of internet search according to Statcounter and 80% of smartphones shipped in the last year are powered by Android. Google still remains one the most valuable tech companies in the world with a market capitalization of $366 billion, second only to Apple.
Can Google beat the analysts? Thursday’s results will answer this question.
MT4 Chart: Google
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