Alphabet (GOOGL) Earnings. What To Expect!
$Alphabet(GOOGL)$ will be announcing their Q3 2023 result on 24 Oct after market close. Market is expecting a consensus earnings per share of $1.46 compared to $1.06 same period one year ago.
In Q2 2023 earnings report, Alphabet has reported a revenue of 7% from $69.7 billion to $74.6 billion. Its net income also rose to $18.37 billion, or $1.44 per share, from $16 billion.
In this article I will be looking at Alphabet Option Open Interest and Implied Move to see how this could help us to find out if Alphabet would be able to move upside when stronger earnings is posted.
Alphabet (GOOGL) Implied Move
Options for Alphabet may be currently slightly overvalued, with the implied move of 5.10%% higher than the average actual move for the past 4 quarters (4.50%) and the past 12 quarters (4.90%).
The options market overestimated GOOGL stocks earnings move 50% of the time in the last 12 quarters. The predicted move after earnings announcement was ±5.5% on average vs an average of the actual earnings moves of 4.9% (in absolute terms).
GOOGL Earnings Implied Volatility Crush
GOOGL's last earnings implied volatility (IV30) going into earnings was 33.2.
The last time GOOGL released earnings, the implied volatility dropped to 23.6, resulting in an implied volume crush of 29%. 5 days after earnings, the 30 day IV was 25.5.
Summary
Based on what we have seen from GOOGL Option Implied Move and also Implied Volatility, we might be seeing GOOGL gaining ±5.5% after its earnings announcement.
I would be monitoring the price to enter on 24 October trading session.
Appreciate if you could share your thoughts in the comment section whether you think GOOGL would gain around 5.5% after its earnings announcement after market close today (24 Oct).
@TigerStars @Daily_Discussion @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
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Surprised GOOG missed on cloud but be interesting to hear MSFT guidance it’s all bout prospects for pipelines having revenue growth above 12% vs bond’s probably being 6.5 2yr and 5.5 ten when we flood markets with debt here in few weeks. GOOG might be headed to $100 their end users are not same as aws azure
Last two quarters, people are betting on Cloud and now that Google lose money in Cloud investment then that portion of betting goes down. The good earning from non-Cloud keep stock price in check. Imagine how much more it would drop if non-Cloud earning was bad. Lets see if guidance would move stock price back to bull.
Unfortunately it’s just down again