Alphabet (GOOG, GOOGL) Earnings Preview: AI Advancements and Analyst Opinions
Get ready for another big earnings report from tech giant Alphabet Inc. (GOOG, GOOGL), the parent company of Google. The company is scheduled to release its financial results for the third quarter of 2024 after the market closes on Tuesday, October 29th.
Analysts are expecting strong performance from Alphabet, with forecasts pointing to earnings per share (EPS) of $1.84, a significant increase from $1.55 in the same period last year. Revenue is projected to reach $86.3 billion, up from $76.69 billion in the previous year, according to data from Benzinga Pro.
Google’s AI Advancements Take Center Stage
One of the key areas of focus for investors will be Google’s ongoing progress in artificial intelligence (AI). Gene Munster, managing partner at Deepwater Asset Management, believes Google’s recently unveiled Project Jarvis initiative signals a major leap forward in AI-powered web browsing capabilities. This development is particularly noteworthy given the parallel advancements being made by Anthropic, a company backed by Amazon founder Jeff Bezos.
Analyst Ratings: A Mixed Bag
While the earnings outlook appears promising, analyst opinions on Alphabet shares are somewhat mixed. Here’s a rundown of recent ratings and price targets:
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Wedbush:
Analyst Scott Devitt reiterated an Outperform rating with a price target of $205 on October 24th. Devitt has an accuracy rate of 83%.*
Truist Securities:
Analyst Youssef Squali maintained a Buy rating and raised the price target from $196 to $220 on October 16th. Squali has an accuracy rate of 80%.*
Needham:
Analyst Laura Martin reiterated a Buy rating with a price target of $210 on October 15th. Martin has an accuracy rate of 72%.*
Cantor Fitzgerald:
Analyst Deepak Mathivanan maintained a Neutral rating with a price target of $190 on October 9th. Mathivanan has an accuracy rate of 78%.*
Wells Fargo:
Analyst Ken Gawrelski maintained an Equal-Weight rating and lowered the price target from $190 to $182 on October 2nd. Gawrelski has an accuracy rate of 71%.Key Takeaways
Alphabet’s upcoming earnings report is expected to be a major event for the tech sector. Investors will be closely watching for signs of continued growth, especially in Google’s AI endeavors. The mixed bag of analyst ratings suggests that while there is optimism about Alphabet’s future, some caution remains.
Stay tuned for the release of Alphabet’s third-quarter earnings on Tuesday, October 29th. The results could offer valuable insights into the company’s performance and its position within the evolving landscape of AI and technology.
