Alphabet, better known as Google (GOOG/L), will report first quarter results this afternoon. Management will host a call at 16:30.
S&P Capital IQ Consensus calls for EPS up 10% to $10.44 with revenue up 20% to $37.36 bln.
Google has exceeded EPS estimates four quarters in a row. Last quarter, solid results on the top-line were offset by higher expenses. Ad revenue grew in excess of 20% for the fourteenth consecutive quarter.
In March, the company unveiled a streaming video game service called Stadia that will allow users to play games without a console on any device. This is another long-term investment that will take time to pay off.
Alphabet does not give financial guidance. Analysts expect FY19 EPS EPS up 7% with revenue up 20%.
TECHS:
The stock is trading at an all-time high heading into the release.
With a market cap of nearly $900 bln, Alphabet trades at just over ~13x EV/EBITDA, which is very cheap.
The weekly options are pricing in a ~3% move by Friday's close. The stock has been riding the 5Day and is possibly extended.
A failure here sets up a massive double top so it will be important to monitor that situation.
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