Google Stock Drops After Earnings - Is Google A Value Stock Now?

TL;DR

Google's stock is down over 20% year-to-date, and their Q1 earnings showed missed expectations on EPS but beat on revenue. Wall Street has lowered its growth rate projections for Google, impacting its valuation. Technical analysis shows a decline in stock price, but Google has strong financials and a potential buyback.

Transcript

google stock is down over 20 year-to-date and that doesn't include the nearly five percent decline we're seeing in the shares in the after hours are we stepping in and buying the dip on google as we head into the rest of the trading week what is going on investors hopefully you guys are doing well out there that is right it's time to talk about goo... Read More

Key Insights

• 💓 Google's Q1 earnings showed mixed results, with a missed EPS but beat on revenue.
• ☠️ Wall Street's lowered growth rate projections for Google have impacted its valuation.
• 🤩 Google's stock price has experienced a decline and broken key support levels, but its financial position is strong.
• 🌱 The company's buyback plan and cash reserves provide support for potential investors.
• 😘 Google's price-to-earnings and price-to-sales ratios are low, indicating a potentially undervalued stock.
• 🍉 The company's long-term growth projections may affect its future earnings and revenue.
• 🎚️ Technical analysis suggests caution in buying the stock, considering potential resistance levels.

Questions & Answers

Q: How did Google perform in Q1 earnings?

Google reported a missed EPS of $24.62 per share, but beat on revenue with a 23% YoY growth to $68 billion.

Q: How has Wall Street's growth rate projections affected Google's valuation?

Wall Street has lowered its growth rate projections for Google, resulting in a lower valuation for the company, with a price-to-earnings ratio close to a 10-year low.

Q: What is the technical analysis for Google's stock?

Google's stock price has declined and broken key support levels, currently sitting at around $2,200 per share. There may be overhead resistance at previous levels of $2,300 and $2,500.

Q: Does Google have strong financials?

Yes, Google has over $130 billion in cash, positive cash flows of $25 billion, and a $70 billion buyback plan, which indicates a strong financial position.

Summary & Key Takeaways

• Google's Q1 earnings showed missed expectations on EPS but beat on revenue, with a 23% YoY growth.

• Wall Street has adjusted its growth rate projections for Google, leading to a lower valuation for the company.

• Google's stock price has declined and broken key support levels, but it still has a strong financial position.