2024-07-22 06:06:03 ET
Summary
- Google is set to report earnings for the June quarter on July 23rd.
- On the positive: Strong commercial momentum for Search, YouTube, and Cloud expected in Q2, which may drive a topline beat.
- On the negative: Limited capital distribution upside and cost pressures may act as headwinds for post-Q2 share price surge.
- Overall, I remain "Buy" rated on Google stock, and continue to view shares as undervalued <$200.
Alphabet Inc. (Google) (GOOG) (GOOGL) is set to report earnings for the June quarter on July 23rd, after the market closes. The last time Google reported earnings, shares surged as much as 15% in after hours trading, given a strong consensus earnings beat. Now, looking to Q2, should investors expect another earnings beat and share price surge, similar to the one seen in Q1? In this article, I discuss the pro and contra argument for a post-Q2 share price surge similar to post-Q1. On the pro side, I see strong commercial momentum for Search, YouTube and Cloud, likely setting up for a notable topline beat, while on the contra side I view limited capital distribution upside and cost pressure as headwinds....
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Google: The Pros And Cons For A Post-Q2 Share Price Surge