Candorium Free Members
Join Candorium to access the full article and more
Free Member Benefits:
✔
Comment & Reply✔
Newsletter Access✔
Follow Authors✔
Share via SMS Go Back
Analysts Upbeat about Google Parent Alphabet’s Earnings as Trump-Musk AI Focus and Worsening Trade Wars Roil Markets
By News Desk - Feb 03, 2025, 11:12 AM ET
The average of forecasts for earnings is $2.13 per share and for revenue $96.67 billion
Google’s parent Alphabet (GOOGL) will be reporting its Q4 2024 earnings on Tuesday amid the great churn in the market that President Donald Trump’s second term at the White House has caused. Analysts are bullish about the stock that closed Friday at $204.
Analysts are buoyant about the tech giant’s revenue and profit estimates. Yahoo Finance, reporting the views of 41 analysts, expects the tech giant to increase the earnings per share to $2.13 (the average of the predictions) from the last quarter’s $2.12 and $1.64 for the same quarter of 2023. The highest estimate was $2.42 and the lowest EPS forecast was $1.84.
Sponsored
Analysts' average quarterly revenue estimate for the company is $96.67 billion, up from last quarter’s $88.27 billion and the previous year’s $86.31 billion. The highest quarterly revenue that the analysts that Yahoo Finance reports quotes is $99.32 billion and the lowest $94.8 billion.
The company’s AI plans will be in the spotlight following the introduction of the cost-effective Chinese AI model DeepSeek which has raised concerns about Big Tech's Artificial Intelligence initiatives, the report says.
President Donald Trump’s return to the White House for a second term has been marked huge developments with implications for the Big Tech. Backed by Elon Musk, the Trump administration has waded into the artificial intelligence world by announcing a $500 billion initiative termed Stargate, with the participation of tech leaders. On the other hand, the phenomenal rise of the Chinese AI alternative DeepSeek has added to the churn in the industry.
U.S. international relations watched
The market is also watching closely international relations of the U.S. with its allies and rivals alike. Trump has slapped 25 percent tariffs on key trading segments with allies Canada and Mexico and rival China, and their responses in kind have worsened market uncertainties.
Citing Visible Alpha, the website says that of the 19 analysts polled, 15 have issued “buy” or equivalent ratings, with four “hold.” Their agreed price target is about $219 that is 7 percent over Friday's closing price.
The revenue expectation is $96.6 billion, up 12 percent year-over-year, and net income of $26.19 billion, or $2.12 per share. The expected profit is a marked jump from $20,69 billion, or $1.64 per share, a year earlier.
Focus on cloud infrastructure growth
According to TradingView.Com, Investors will closely watch the results from Alphabet’s cloud infrastructure segment, a key player in AI ecosphere. Alphabet has been sharpening its focus on AI with the announcement of the quantum chip.
The market data website expects the performance of Google’s advertising revenue also to be in focus.
Investopedia quotes Bank of America analysts as saying that in a recent note that they viewed last week's strong results from Meta (META), which stood by its AI spending plans, as a positive signal for Alphabet. Bank of America recognizes the increased urgency of further Alphabet push on AI after DeepSeek’s phenomenal rise.
Sponsored
Read More from EarningsNews
Read More from USinMinutes
Popular News
Latest News
