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Alphabet to report Q1 earnings after the bell Tuesday


Sundar Pichai (CEO Alphabet) gestures as he speaks during a discussion about artificial intelligence held at the Bruegel Europeaneconomic think tank in Brussels on Jan. 20, 2020.

Geert Vanden Wijngaert | Bloomberg | Getty Images

Google parent AlphabetAfter the bell Tuesday, we will release our first quarter earnings.

Here’s what Wall Street analysts expect:

  • Earnings per share25.91 dollars expected according to Refinitiv
  • RevenueRefinitiv estimates that $68.11 billion is possible
  • YouTube Advertising Revenue: According to StreetAccount, $7.51 Billion is expected
  • Google Cloud revenue:According to StreetAccount, $5.76 Billion is expected
  • Costs of traffic acquisition (TAC). According to StreetAccount, $11.69 Billion is expected

Alphabet’s slowing revenue growth is due to the Pandemic. Spending rebounded after the economic recovery. This quarter is forecast to see sales growth of 23%. That’s down from 34% a year prior.

Google was also available during the quarter. pulledMany of the company’s services were moved to Russia following the invasion of Ukraine. This was partly due to US sanctions. It is likely that this will hurt European revenues. After blocking certain media networks of state backing from search results and YouTube, the company stopped recommendations and ads in Ukraine and Russia.

Google’s battle with Google for the Ads Business continues as Google grows its cloud infrastructure faster than their ads business. AmazonAnd MicrosoftCompanies that move workflows from their data centers to the cloud will be able to generate revenue. The company is expected to experience 42% cloud growth according to analysts.

Google launched March. announcedMandiant, a cybersecurity company that was acquired for $5.4billion. Closing approval will be granted in the next few months. This business will work with Google Cloud.

Google started this month bringingEmployees are allowed to return to their physical workplace three days per week, despite the fact that they face some challenges pushbackStaffers. Also, employees said that they were proud to be part of an annual surveyCNBC reported that employees are unhappy about pay, promotions, and execution.  

Google has stated that it supports hybrid work and is investing heavily in new places. Alphabet stated during quarter that the company would invest heavily in new locations. investingNearly $10 billion was invested in U.S. real estate projects in 2022. CEO Sundar PichaiAccording to the expansion, it would lead to approximately 12,000 additional jobs.

Alphabet was also confronted with new labor issues during this quarter. These are common as the market tightens, and workers organize in the sector. An example of a Google Fiber facility in Kansas City, Missouri. voted to unionize under Alphabet’s Workers Union, after votes were counted and approved by the U.S. Labor Board. The milestone vote represents the first location to unionize with bargaining rights under Alphabet’s nascent worker’s union, which formed a year ago.  

After outperformingAlphabet has been more consistent with its peers than any other Big Tech stock last year. While the Nasdaq is up 20%, the stock has fallen 17% over the past year.

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