What to anticipate from Alphabet (Google) today's earnings

 New: What to anticipate from Alphabet (Google) today's earnings

What to anticipate from Alphabet (Google) today's earnings

Alphabet GOOGL -2.3% Inc. is scheduled to report earnings after Tuesday’s close. GOOGL hit a split adjusted record high of $151.55/share in 2022 and is currently trading near $107/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:



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Earnings Preview:


The company is expected to report a gain of $1.27/share on $70.78 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $1.24/share. The Whisper number is the Street's unofficial view on earnings.



Charts & Data Courtesy of Market Smith Inc. 

Charts & Data Courtesy of Market Smith Inc. CHARTS & DATA COURTESY OF MARKET SMITH INC.

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A Closer Look At The Fundamentals:


The company’s earnings and sales have been decelerating over the past four quarters which may lead to a lousy period going forward. Traditionally, Alphabet has been considered a growth stock and, by definition, earnings and sales have been steadily growing. Now, we are seeing earnings slow down which has been a big reason for the stocks’ recent decline. Meanwhile, other tech advertising related stocks have fallen recently after reporting disappointing quarterly results.



A Closer Look At The Technicals:


Technically, the stock is in a downtrend and is currently building a new base to digest its recent decline. Support, or the bottom of this consolidation area, is $101.88 and resistance, or the top of the range, is $119.69. Until either level is broken one has to expect this sideways action to continue. However, if the stock breaks above resistance, it will likely begin another leg higher. Conversely, if it breaks below support then odds favor it will likely continue to fall.


Pay Attention To How The Stock Reacts To The News:


From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.


Disclosure: Alphabet has been featured in the FindLeadingStocks.com Report.


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FORBES DIGITAL ASSETS

Sam Bankman-Fried Tries To Rescue Crypto...Again (Video)

Rosemarie Miller

Forbes Staff

I cover cryptocurrency for Forbes Digital Assets.

Meg Christensen

Forbes Staff

Editorial Video Producer, Digital Assets

Jul 25, 2022,06:45pm EDT


Sam Bankman-Fried continues to use his seemingly bottomless money pit to rescue crypto companies. FTX and Alameda Research created a plan last week to help the customers of the now fallen crypto company, Voyager Digital.



Today’s guest is Jason Brink, the president of blockchain at Gala Games. Blockchain gaming has been a hot topic lately. Just last week, Mojang studios announced its plans to ban NFTs, or non-fungible tokens, from its Minecraft game. For those who may not understand why the topic caused such an uproar in the gaming and NFT communities, Brink offers fresh insight.


In the world of crypto we discuss:


Sam Bankman-Fried’s attempt to bail out Voyager Digital

Texas GOP Aiming to incorporate crypto in its state’s Constitution

Audius loses $1 million in AUDIO tokens in a hack

Blockchain.com downsizing its staff

US-BITCOIN-FTX

SBF continues to bail out crypto companies AFP VIA GETTY IMAGES


Rosemarie Miller

I cover cryptocurrency for Forbes Digital Assets. I graduated from Howard... Read More



Meg Christensen

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BREAKING

MARKETS

S&P 500 Falls Over 1% After Walmart’s Profit Warning, Consumer Confidence Tumbles

Sergei Klebnikov

Forbes Staff

I cover markets and business news.

Jul 26, 2022,04:03pm EDT

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TOPLINE The stock market fell on Tuesday, with retail stocks leading declines after Walmart slashed its profit outlook for the rest of the year and warned that high inflation is having an impact on consumer spending, while new data showed consumer confidence hit its lowest point in over a year.

Stock Markets Continue To Take Dive Downward

“Gloomy” corporate outlooks led to renewed[+]DREW ANGERER/GETTY IMAGES


KEY FACTS

Stocks were under pressure amid renewed recession fears: The Dow Jones Industrial Average fell 0.7%, over 200 points, while the S&P 500 lost 1.2% and the tech-heavy Nasdaq Composite 1.9%.


Walmart Shares Plunge Nearly 10% After Company Warns Of Profit Slowdown Due To Inflation

Markets were hard-hit following a profit warning from Walmart late on Monday, with America’s largest retailer describing that inflation is “affecting how customers spend,” with notable cutbacks in spending on general merchandise like apparel and TVs.



Retail stocks widely moved lower across the board on Tuesday as a result, with Macy’s, Target and Kohl’s all falling by 5% or more, while the SPDR S&P Retail ETF, which tracks the sector, lost roughly 4%.


What’s more, stocks fell after the latest data from the Conference Board showed the consumer confidence index fell to 95.7 in July—its third consecutive monthly decline, while short-term expectations for the business outlook remain at nearly a decade-low.



Investors also continued to assess the latest batch of second quarter earnings: Of the 133 companies in the S&P 500 that have reported so far, roughly 80% have beaten analyst expectations, according to Refinitiv data.


Shares of General Motors and UPS both declined after lackluster earnings results, while the likes of Coca-Cola, McDonalds and General Electric all reported strong results and saw their stocks rally on Tuesday.


WHAT TO WATCH FOR:

The Federal Reserve will conclude its two-day policy meeting on Wednesday, with investors widely expecting the central bank to raise interest rates by another 75-basis-points. The Fed hiked rates by the same amount at its meeting last month, pledging to use “more restrictive policy” as needed, while also warning of a “significant risk” that high consumer prices could become “entrenched” for longer.


TANGENT:

Shares of Shopify, meanwhile, tanked 14% ahead of earnings on Wednesday. The e-commerce company announced Tuesday that it was laying off roughly 10% of its total workforce as customers spend less on online shopping.



CRUCIAL QUOTE:

“Stocks declined after a wrath of gloomy corporate outlooks made it seem like this current wave of growth concerns would send this economy quickly into a recession,” says Edward Moya, senior market analyst at Oanda. “With a lot of massive earnings due after the bell and later this week, Wall Street is bracing for softer outlooks and intensifying recession pressures.”


FURTHER READING:

Walmart Shares Plunge Nearly 10% After Company Warns Of Profit Slowdown Due To Inflation (Forbes)


IMF Warns Of ‘Gloomy Outlook’ For Global Economy, Slashing Growth Estimates (Forbes)


New China Covid-19 Lockdowns Would Threaten U.S. Economic Recovery (Just Ask Tesla) (Forbes)


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Sergei Klebnikov

I am a senior reporter at Forbes covering markets and business news.... Read More


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BREAKING

MARKETS

IMF Warns Of ‘Gloomy Outlook’ For Global Economy, Slashing Growth Estimates

Sergei Klebnikov

Forbes Staff

I cover markets and business news.

Jul 26, 2022,10:16am EDT

Updated Jul 26, 2022, 02:08pm EDT

TOPLINE The International Monetary Fund warned on Tuesday of a slowdown in global economic growth as the world economy continues to take a hit from “increasingly gloomy developments in 2022,” including high inflation, a slowdown in China caused by Covid lockdowns and ongoing fallout from Russia’s war in Ukraine.

The global economic outlook has “darkened,” and[+]EUGENE HOSHIKO/ASSOCIATED PRESS

KEY FACTS

The IMF slashed its global growth projections, now expecting global GDP to grow 3.2% this year and 2.9% in 2023, down from previous estimates in April of 3.6% GDP growth for both years.


The group cited a slowdown in the world’s three largest economies—the United States, China and the euro area—as a reason for the revised estimates, warning that the risks to the outlook remain “overwhelmingly tilted to the downside.”


Several “shocks” have hit the global economy as it tries to recover from the pandemic, including higher-than-expected inflation worldwide–especially in the United States and Europe, a worse-than-anticipated slowdown in China caused by Covid lockdowns and “further negative spillovers” from the war in Ukraine.


The IMF also said that high inflation remains a “major problem” as prices have continued to rise in 2022, led by soaring food and fuel costs, arguing that “taming inflation should be the first priority for policymakers” worldwide.


The group now expects global inflation to hit 6.6% in advanced economies and 9.5% in developing economies this year, though prices are expected to return to near-prepandemic levels by the end of 2024.


The IMF also slashed its growth estimates for the U.S. economy, now forecasting GDP to rise 2.3% this year and 1% in 2023, down from previous estimates of 3.7% and 2.3%, respectively, amid the impact of tighter monetary policy and reduced household purchasing power.


CRUCIAL QUOTE:

“The outlook has darkened significantly since April,” IMF chief economist Pierre-Olivier Gourinchas said in a statement. “The world may soon be teetering on the edge of a global recession, only two years after the last one.”


WHAT TO WATCH FOR:

“The slowdown in China has global consequences,” the IMF said. “Lockdowns added to global supply-chain disruptions and the decline in domestic spending are reducing demand for goods and services from China’s trade partners.” The group now sees China’s economy growing 3.3% in 2022—its lowest pace in four decades and down over 1% from previous estimates.


SURPRISING FACT:

The World Bank similarly slashed its forecasts for the global economy last month, predicting GDP growth in 2022 of just 2.9%, down from an earlier estimate of 4.1%.


FURTHER READING:

IMF Sounds Alarm On ‘Significant Slowdown’ As Ukraine War And Inflation Slam Global Economies (Forbes)


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Sergei Klebnikov

I am a senior reporter at Forbes covering markets and business news.... Read More


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