Google revenue

Alphabet expected to post double-digit fourth-quarter profit and revenue growth

Jhe parent of Google and the world’s largest search engine that dominates Internet search activity globally, Alphabet, is expected to report fourth-quarter earnings of $26.71 per share, representing growth year-over-year by about 20% versus $22.3 per share seen in the same period a year ago.

The Mountain View, Calif.-based internet giant would post nearly 30% revenue growth to around $59.3 billion. It’s worth noting that the company has consistently exceeded consensus earnings estimates for the past two years, at least.

Alphabet stock was trading down 2.52% at $2,550.41 on Tuesday. The stock has fallen nearly 12% so far this year after jumping more than 65% in 2021.

Analyst Comments

“Continued innovation at the platform level on business search and YouTube; as well as undervalued revenue driven by mobile search and Maps could drive further website growth in 23. Continued spending discipline leads to a operating leverage and upward revisions to EPS estimates,” noted Morgan Stanley equity analyst Brian Nowak.

“Data from AlphaWise shows how Alphabet’s (GOOGL) innovation continues to drive more consumers to start shopping online on GOOGL, giving us more confidence in its multi-year growth in online ads. This change is true even for Prime members, who seem to start on less frequently, a trend to watch.

Alphabet Stock Price Prediction

Twenty-eight analysts who offered stock quotes for Alphabet over the past three months forecast a 12-month average price of $3,386.25 with a high forecast of $3,925.00 and a low forecast of 2 $965.00.

The average price target represents a 32.00% change from the last price of $2,565.38. Of these 28 analysts, 27 rated “Buy”, one rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base price target of $3430 with a high of $3840 in a bullish scenario and $2395 in a worst case. The investment bank assigned an “overweight” rating to the action of the internet giant.

Several other analysts also updated their stock outlook. UBS cut the target price to $3,800 from $3,925. BofA Global Research raised the price target to $3,470 from $3,210. Cowen and company raised the target price from $3,360 to $3,500.

Technical analysis also suggests that it is good to hold for now, as the 100-day moving average and the 100-200-day MACD oscillator are showing a mixed signal.

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This article originally appeared on FX Empire

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