Investors are always on the lookout for stocks that can generate returns for them. In this respect, Google Inc. is a stock that pops up frequently as its market cap and value are estimated to be very promising. With the company’s recent earnings call expected to touch the highs of the current month, investors have been focusing on what the stock’s reach is going to be in the current market.
Google Stock Expectations for the Upcoming Earnings
In the past, Google Inc. has consistently outperformed expectations when it comes to its financial results. For this quarter, analysts are expecting the stock to report earnings of around $9.83 per share with revenue for the quarter to stand at $24.59 billion.
If these expectations are met, then it would mean that Google’s stock bottom line has improved from 13.4% year-over-year, with revenues expected to increase by a further 22%. This represents an ideal investment opportunity for investors looking to make gains in the short-term.
What Investors Should Look Out For
When it comes to Google’s earnings report, investors should focus on a few key indicators. Firstly, they should analyze how much growth Google has been able to register with respect to its advertising business. As this is the company’s most profitable segment, and its success lies on the back of increased viewership across its platforms, investors should pay special attention to this.
Additionally, investors should take into account the growth in Google’s cloud services. This sector has already seen an uptrend and is expected to register increased growth further. This area of Google’s business is forecasted to register the highest growth rate of all, in the light of the current pandemic.
Finally, investors should also take a closer look into Google’s digital media services. With increasing viewership on YouTube and other popular streaming platforms, investors should ensure that Google is able to monetize these avenues and earn revenue.
Conclusion
The expectations for Google stock this earnings is extremely encouraging. However, investors should still pay extra attention to the key segments, to make an informed decision. If Google is able to meet these expectations, the stock could prove to be a rewarding pick in the current setting.