Google Q2 Earnings Preview | GOOGL Stock Valuation & Technical Analysis

TL;DR

Google's upcoming earnings report is expected to show steady growth in revenue, particularly in advertising and network sectors, with a potential focus on YouTube and Google Cloud. The stock has experienced a significant drop this year but has the potential for a significant move after earnings.

Transcript

google reports their earnings on tuesday july 26 and on today's show will give you a preview of what to expect when google reports their earnings what is going on investors hopefully guys are doing well out there going to talk about google today on a number of different subjects first of all year to date stocks down 25 that includes a pretty rather... Read More

Key Insights

• 🙈 Google's stock has seen a significant drop this year, but its long-term growth has been impressive, with a 122% increase over the past five years.
• 🫠 The majority of Google's revenue comes from its advertising business, particularly ads on Google.com and its ad network.
• 🛀 Google Cloud has shown promising growth in revenue, although it is still operating at a loss.
• 🫠 YouTube, as part of Google's portfolio, has the potential for significant revenue growth as companies shift towards video ads.
• 🥳 Google's valuation, with a price to sales ratio of five and a price to earnings ratio of 20, suggests that it may be undervalued compared to similar companies in the market.
• 🌓 Analysts expect steady revenue growth for Google in the upcoming quarters.
• ❓ The stock has the potential for a significant move after earnings, with support at $100 and resistance at $120 and $130.

Questions & Answers

Q: What are analysts expecting from Google's upcoming earnings report?

Analysts are expecting steady revenue growth, with estimates of $70 billion for the upcoming quarter and projections of $73 billion and $83 billion for the third and fourth quarters, respectively.

Q: How has Google's stock performance been over the past few years?

While the stock has experienced a drop this year, over the past five years, it has had a 122% increase in value. The steady revenue stream and expanded profit margins have contributed to the stock's overall growth.

Q: What are the main sources of revenue for Google?

The majority of Google's revenue comes from its advertising business, with ads on Google.com and its ad network accounting for about three-quarters of the company's total revenue. This is followed by revenue from YouTube.

Q: How has Google Cloud's performance been?

Google Cloud has shown a trend of increasing revenue over the past two years, reaching $5.8 billion in the most recent quarter. While still operating at a loss, there is potential for profitability in the future.

Summary & Key Takeaways

• Google's year-to-date stock performance has seen a 25% drop, but recent earnings reports from Snapchat had a negative impact on Google as well.

• The majority of Google's revenue comes from its advertising business, which includes ads on Google.com and its ad network displayed across various websites.

• Google Cloud, while still operating at a loss, has shown increasing revenue over the past two years.