Analysts on average expect Alphabet will print EPS of $1.20 on revenues of $65.42 billion.
When Alphabet printed first-quarter earnings on April 25, the stock opened slightly higher but closed the following trading day flat. Alphabet then continued to trade sideways until May 5, when it started to increase sharply, rising 20% between that date and June 7, when the stock topped out at $129.55.
For that quarter, Alphabet printed earnings of $1.17 per share, which beat the analyst estimate of $1.06. The Google parent company reported quarterly revenues of $69.79 billion, beating the $68.9-billion estimate.
Traders and investors are interested in hearing how far along Alphabet is working to further its artificial intelligence research.
From a technical analysis perspective, Alphabet looks set to choose a direction for the longer term following the print because the stock is trading in a falling channel pattern on the daily chart. Of course, holding a stock or options through earnings is akin to gambling because a stock can fall on a positive print and soar on negative results.
The Alphabet (GOOG) Chart: Alphabet was rising up over 1% Tuesday, attempting to break up from a falling channel pattern on the daily chart. The pattern leans bearish for the short term but can be bullish down the road.
- Bullish traders want to see Alphabet break up from the channel pattern, which could signal a longer-term reversal to the upside. Bearish traders want to see the stock continue to reject the upper descending trend line of the channel, which would confirm the downtrend within the parallel lines remains intact.
- Tuesday’s move higher was taking place on lower-than-average volume, which gives less conviction to the move higher. With the Fed’s decision on interest rates coming at 2 p.m. ET Wednesday, investors could continue to wait on the sidelines.
- Alphabet has resistance above at $126.41 and at $131.40 and support below at $122.10 and $117.23.
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