Alphabet Investors Feeling Optimistic Prior to Report

googleFollowing last night’s results from Facebook, shares of Alphabet Inc. (NASDAQ:GOOG) surged in the after-hours ahead of what will be the company’s earnings results after the bell today. Current estimates are for the company to deliver EPS of $8.04 on revenue of $20.77 billion.

As for the revenues, most analysts will zero in on the growth rate for the quarter, which is expected to increase by 17% y/y; Q1 came in at 17.4%; Q4 came in at 18.5%. Paid clicks will be another focus after Q1 was down 3% q/q and up 29% y/y; while Q4 increased 22% on Google Sites.

The highlight for paid clicks of course is what occurs on Google websites. We saw Q1 2016 up 38%; Q4 +40%; Q3 +35%. The question for some analysts will be if Facebook is putting a dent in Google’s business when it comes to ad spend revenues.

One thing is certain and that is the stock has the potential to react quite dramatically. Recent earnings moves have seen prices spike up around $100 (Q2 2015) as well as drop $40 following its most recent quarter.

The stock is up almost $60 over the last month as it heads into today’s report, so investors are feeling like good news may be coming.

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GOOGL shares rose $1.42 (+0.19%) to $763.39 in Thursday afternoon trading.

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