Google parents alphabet (((Google) Reported June quarter earnings, and investors may be preparing for a slowdown in digital advertising. However, it may not be prepared for the expected impact of TikTok on YouTube and GOOGL shares.
Alphabet reports earnings for the June quarter after the market closed on Tuesday.Google shares sold out after July 22 snap (((snap) Second quarter results were disappointing. Snap’s revenue and revenue missed a quote because the weak advertising market was sacrificed.
Analysts lowered their quotes towards Google’s earnings report.
Analysts predict Alphabet’s revenue will slow from 62% growth in the previous year to $ 70.2 billion, up nearly 13%. They expect earnings per share to drop 6% to $ 1.28.
GOOGL Stock: YouTube growth expected to slow
Wall Street predicts YouTube’s revenue growth will slow to 7%, compared to 14% in the March quarter. In the same period last year, YouTube’s advertising revenue surged 84% as Google recovered from the coronavirus pandemic.
In a recent report, Cohen analyst John Blackledge adjusted YouTube’s revenue growth to 7.5%.
“Our latest research re-emphasizes the potential risk to YouTube mobile viewing share in the rise of TikTok,” he said. “When we asked respondents which of the 18-24 demographics they use” most “for mobile video, YouTube led all platforms in the second quarter. However, YouTube fell to 40% of respondents, compared to 48% in the second quarter of 2021. 2, 22%. “
In June, Google announced that YouTube Shorts has 1.5 billion monthly login users worldwide. YouTube Shorts is TikTok’s short video rival. However, YouTube is still testing ads with a short video service. It’s not making money yet.
Google Revenue Phone: TikTok Impact
Justin Post, an analyst at Bank of America, said Google is likely to be in a better position than its peers when it comes to slowing advertising.
“Although it is likely that advertising stocks will see more decline in revenue, Alphabet has a wider range of advertisers, so I think its relative earnings are more stable,” he said in a report.
“The earnings announcement requires management to address tighter comparisons / pressures on consumer spending, the impact of TikTok on YouTube, negative cloud margins, and a product pipeline to drive new enthusiasm for equities. There may be, “he said.
Google strains have substandard relative strength ratings
According to the GOOGL strain, the relative strength rating is only 40 out of the highest possible 99. IBD stock check.. The best stocks tend to have an RS rating of 80 or higher.
Google Stock owns a C-cumulative / distribution rating. This rating analyzes changes in stock prices and trading volumes over the last 13 weeks of trading.
The IBD composite rating for GOOGL shares is 73 out of 99. IBD’s composite rating is a combination of five individual and unique ratings in one easy-to-use rating. The overall rating of the highest growing stock is over 90.
Follow Reinhardt Krause on Twitter @reinhardtk_tech The latest information on 5G wireless, artificial intelligence, cyber security, and cloud computing.
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