Alphabet (GOOG), the parent company of Google, is set to release its Q4 earnings after market close, followed by a conference call at 4:30 p.m. ET.
FactSet's consensus estimates for EPS and revenue are $1.59 and $85.3 billion, respectively. Without specific guidance from GOOG, analyst estimates can vary greatly, though recent quarters have seen slight EPS beats.
GOOG's results are crucial for assessing the online advertising market's health, especially before upcoming earnings from Meta Platforms (META), Snap (SNAP), and Pinterest (PINS).
Last quarter, GOOG's advertising business, accounting for 80% of its total revenue, grew by 9.4% to $59.6 billion, signaling increased marketing budgets.
Google Search revenue increased by 11%, alleviating concerns about losing ground to Microsoft (MSFT) and its AI-enhanced Bing search.
YouTube also showed strong growth, with an 11.3% increase in revenue, indicating a competitive edge against TikTok as YouTube Shorts gains popularity.
However, GOOG's Cloud segment underperformed, with revenue growth slowing to 22% and a 33% quarter-over-quarter decrease in operating income.
This contrasted with MSFT's Azure, which achieved 28% growth, suggesting GOOG may be lagging in the AI race. The performance of GOOG's Cloud segment will be a focal point in the earnings report.
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