JHVEPhoto
- Google is set to report earnings for the June quarter on July 23rd.
- On the positive: Strong commercial momentum for Search, YouTube, and Cloud expected in Q2, which may drive a topline beat.
- On the negative: Limited capital distribution upside and cost pressures may act as headwinds for post-Q2 share price surge.
- Overall, I remain “Buy” rated on Google stock, and continue to view shares as undervalued <$200.
Alphabet Inc. (Google) (NASDAQ:GOOG) (NASDAQ:GOOGL) is set to report earnings for the June quarter on July 23rd, after the market closes. The last time Google reported earnings, shares surged as much as 15% in after hours trading, given a strong consensus earnings beat. Now, looking to Q2, should investors expect another earnings beat and share price surge, similar to the one seen in Q1? In this article, I discuss the pro and contra argument for a post-Q2 share price surge similar to post-Q1. On the pro side, I see strong commercial momentum for Search, YouTube and Cloud, likely setting up for a notable topline beat, while on the contra side I view limited capital distribution upside and cost pressure as headwinds.
READ FULL ARTICLE HERE!
