Alphabet Inc. (NASDAQ: GOOGL)
Alphabet Inc. Earnings & Technicals
After the market closed on Thursday, Alphabet Inc. (GOOGL) announced earnings that missed analyst expectations and sent shares tumbling in the post market session. The company announced adjusted earnings per share of $7.50 on $20.3 billion in revenues while analysts were looking for $7.97 per share on $20.37 billion in revenues. This is also compared to $17.26 billion in revenues for the same period ending last year. Currently analysts have an average price target of $927.24.
Looking at the chart you can see that shares tumbled in the post market session after closing the day at $780.00. Shares hit premarket lows of $717.00 marking an 8% drop in price on heavy volume. However, we should see some support come in at the 200-day moving average currently sitting at $714.27 and the $700 level while resistance will be met at $740.00 and the 50-day moving average at $746.52. Looking back on the daily chart you will see that shares have been fairly strong for the long term holders as they have traded most of the time above the 200-day moving average for 2015 and 16 while also outperforming the S&P 500. Expect a wild ride in this high beta stock today so if you’re looking to trade it keep your stops tight and profit targets realistic.
“Our teams are off to a great start this year and there is even more excitement in the month ahead as we gear up for big events like our annual developer conference, Google IO, our YouTube event Brandcast, and the Google Performance Summit for advertisers.Google’s mission is to organize the world’s information and make it accessible and useful. And after 17 years, we have just scratched the surface of what’s possible. We are reinvigorated around this mission and, as you will hear, we are making solid progress across many of our products.” (TheStreet)
“Our Q1 results represent a tremendous start to the year with 17% revenue growth year on year and 23% growth on a constant currency basis. We’re thoughtfully pursuing big bets and building exciting new technologies, in Google and our Other Bets, that position us well for long term growth,” said Ruth Porat, CFO of Alphabet. (ABC)
Alphabet, Inc. is a newly founded holding company for the Google group of businesses. Under the new operating structure, its main Google business will include search, ads, maps, apps, YouTube and Android and the related technical infrastructure (the ‘Google business’). Businesses such as Calico, Nest, and Fiber, as well as its investing arms, such as Google Ventures and Google Capital, and incubator projects, such as Google X, will be managed separately from the Google business. The new legal and operating structure will be introduced in phases over the coming months and when finalized, Google anticipates that it will result in two reportable segments for financial reporting purposes, with the Google business presented separately from other Alphabet businesses taken as a whole. Accordingly, Alphabet will report its results under this new structure commencing with its Q4 earnings release and its Annual Report on Form 10-K for the period ending December 31, 2015. The company was founded on 2nd October, 2015 and is headquartered in Mountain View, CA (MarketWatch)