Google tops Q3 2023 earnings? Read & decide.
$Alphabet(GOOG)$ will be reporting its Quarterly earnings after US market closes on Tue, 24 Oct 2023.
On the eve of its reporting, what will the outcome be?
Market expectations:
Analysts expecting earnings to pop on easier YoY comparisons.
According to consensus estimates, YouTube's advertising revenue growth should have rebounded.
Earnings per share (EPS) is expected to jump +30% to $1.46.
Google earnings rose +17%, snapping 5 consecutive quarters of declining profits in the June quarter.
Based on FactSet, Q3 2023 gross revenue is expected to rise +10% to $76 Billion.
SHOW ME THE MONEY!
(1) Ad Revenue.
Wall Street analysts:
Expect core digital ad revenue to climb +8.6% to $59.1 Billion.
Expect YouTube advertising revenue to rise 10.7% to $7.82 billion.
Based on Evercore ISI analyst Mark Mahaney — "intra-quarter checks" point to "continued modest recovery in the overall ad spending environment and consistently high wallet share for internet search.
The big “unknown" includes:
Whether the "recent industry strikes would have driven "linear ad spend towards digital channels (YouTube)."
How much of stiff competition from TikTok, has eroded Youtube’s revenue.
Google management is expected to comment on YouTube TV subscriber growth amid newly acquired streaming rights for NFL Sunday Ticket, during the earnings conference.
(2) Cloud Computing Services.
Based on Dgtl Infra, Mary Zhang’s 10 Oct 2023 post, Google Cloud Platform (GCP) remains the third (#3) cloud service provider globally in 2023. (see above)
It enables developers to build, test, and deploy applications on its distributed and scalable infrastructure, while utilizing the service’s capabilities in security, data management, analytics, and artificial intelligence (AI).
GCP has a robust infrastructure and presence over 39 regions and 118 availability zones in operation.
These regions and availability zones are located throughout the United States, Americas, Europe, Asia Pacific, as well as in the Middle East and Africa. (see above)
Based on “TheCTO” website, it has taglined GCP as “Best for machine learning and data analytics”.
This is because Google offers a full-suite of cloud services — [1] Infra as a Service (IaaS), [2] Platform as a Service (PaaS), and [3] Software as a Service (SaaS).
GCP is great for data-centric companies who want an easy-to-digest platform because it has advanced machine learning and data analytics capabilities.
For Q3 2023 earnings, GCP revenue is expected to grow approximately +26% to $8.64 Billion, compared to 28% growth in Q2.
FYI — cloud revenue jumped +37% in the year-earlier quarter.
SHOW ME GOOGLE’s FUTURE!
(3) Google’s Artificial Intelligence initiative.
Analysts expect Google to provide an update on its artificial intelligence initiatives, especially "Gemini," a new large language model.
Google is reportedly launching the AI model in the 4th Quarter 2023, that is expected to compete headon with startup OpenAI's GPT-4.
Large language models provide the building blocks to develop AI-laced applications.
My Viewpoints:
I believed that Google should be able to grow from strength to strength.
Now that co-founder Sergey Brin (and more importantly, Google’s core “brain”) is back to steer the company in times of challenge.
No post/s have mentioned but I believed all these years of [a] “search engine” data activities and [b] big data learning in the background, will not go in vain.
Google would not be just- pushed off or disposed off (the AI race) just like that.
It would not go down without a fight.
I am especially keen to know more about “Gemini” as well because what is the use of having a tool (like ChatGPT or Bard) without actual implementation and leverage on the AI-technology, to hopefully serve mankind.
Do you think Google will report a healthy quarterly earnings for Q3 2023?
Do you think Google will get to retain the AI crown position in the not too distant future?
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Google beat estimates on the top and bottom line and traders are selling because the cloud business came in $200m short of estimates?! Google’s advertising business beats estimates by about $1B but traders don’t care about that. Market is so rigged.
I’ve got my limit buy at $115 which I think is a big support level.
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
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The Graph monthly very strong, last month doji, this month confirms the doji trend reversal and the weekly last week hammer. RSI weekly breaks the line 50 and we break the SMA 30 and 50 weekly
Looks like WS was only 'concerned' about Google 'cloud sales' for a few days, or just long enough to STEAL shares from weak hands using a weak narrative. The SCAM will go on forever.
Google, in particular, swiftly entered a state of extreme oversold conditions. Interestingly, the very individuals or groups that initially dumped Google are now showing interest again, which is rather amusing.
Good companies the sell off due to manipulation nearly always bounces back to 1/2 of the drop.. so Google will retest 130 in the next few weeks.
Apple is red and Microsoft is fading fast.
Microsoft is red.
Google on deck.
Bring the market up?
Cant short Google .. AI technology is too much potential and the company is too dominant and useful for society.
Google is back up a week after all of media bashed a 2% miss in cloud during a top and bottom
Not sure Google is good to invest now... Lack of rising momentum
Unfortunately it’s just down again
Amazing