Live Chat

hundred dollar bills

Alphabet’s earnings call may be positive sign for other tech firms, says Wedbush analyst

Alphabet’s fourth-quarter earnings could spell good news for Amazon and Meta Platforms, which are set to announce their own quarterly results later today, according to Wedbush analyst Dan Ives.

Both Meta and Amazon are scheduled to release their fourth-quarter financials after the stock market closes on Thursday.

In a note made available to MarketWatch, Ives wrote:

“We see positive readthroughs for AMZN/META following Google’s results. We are encouraged by performance across Google Search and YouTube, which we think indicates a healthy digital advertising backdrop, in line with our expectations heading into results”.

Alphabet's Google Search revenue saw a 12.7% year-over-year increase for the quarter, closely matching Wedbush's projection of a 12.5% rise.

Revenue from YouTube advertisements outperformed, registering a 15.5% growth from the previous year, surpassing Wedbush's forecast by 1 percentage point. Wedbush maintained an Outperform rating on Alphabet shares with a $160 price target, despite the company’s stock sliding by over 6% in early trading on Wednesday.

Amazon shares declined by 1.6%, while Meta shares fell by 2.3%.

Choose your points of movement

Сalculate your hypothetical P/L (aggregated cost and charges) if you had opened a trade today.

Market

Shares Search
Shares
Index
Commodity
Bonds
Crypto
ETFs
Currency

Instrument

Search
Clear input
Occidental
Prosus N.V.
Porsche AG
Hermes
CAT
Thermo Fisher
Nikola Corporation
Tilray
Shell plc (LSE)
Skillz Inc
Iberdrola
DeltaAir
CrowdStrike Holdings
Golar LNG
Applied Materials
Snowflake
Royal Bank Canada
Amazon.com
Spotify
Exxon Mobil
CCB (Asia)
McDonald's
Campari
GameStop
Netflix
ON Semiconductor
Costco
Dave & Buster's
Delivery Hero SE
LUCID
Continental
Zoom Video Communications
Schlumberger
Virgin Galactic
Upwork Inc.
Cameco
JP Morgan
Fuelcell
Rivian Automotive
XPeng Inc
Wal-Mart Stores
Trade Desk
Blackstone
Vodafone
Aptiv PLC
L'Oreal
Target
Rio Tinto
Sartorius AG
British American Tobacco
Qorvo
ASOS
Cisco Systems
Nel ASA
Arista
Airbus
Apple
Pfizer
AMC Entertainment Holdings
ASML
Hubspot
Teladoc
Starbucks
SMCI
Canopy Growth
Wish.com Inc
Lockheed Martin
ProSiebenSat.1
IAG
AbbVie
Marston's
Baidu
Teleperformance
Norwegian Air Shuttle
Airbus Group SE
HSBC HK
Block
Annaly Capital
Abbott
LVMH
American Express
Novavax
GoPro
Siemens
Total
SIG
Pinterest Inc
Taiwan Semi
Etsy
Amgen
SONY
3D Systems
UPS
BlackBerry
Gen Digital Inc
Xiaomi
Quanta Services
Unity Software
NVIDIA
Anglo American
Palantir Technologies Inc
Fresnillo
Deere
Rolls-Royce
Porsche
Uber
Vir Biotechnology
American Airlines
ROBLOX Corp
Macy's
FirstRand
easyJet
DISNEY
Aurora Cannabis Inc
BP
Adidas
Boeing Co
Vonovia
Coca-Cola Co (NYSE)
Home Depot
General Electric
Coinbase Inc
ALIBABA HK
Philip Morris
General Motors
PayPal
UniCredit
II-VI
BASF
Kraft Heinz
Alphabet (Google)
Palo Alto Networks
Plug Power
Li Auto
Oracle
Roku Inc
UiPath Inc
Upstart Holdings Inc
F5 Networks
Infinera
Inditex
ZIM Integrated Shipping Services Ltd
Deutsche Bank
Hammerson
IBM
JD.com
Barrick Gold
Lemonade
MerckCo USA
Infosys
Invesco Mortgage
Comcast
Santander
Accenture
Anheuser-Busch Inbev
Visa
Mastercard
T-Mobile
SAP
Wayfair
Beyond Meat
Kuaishou
CarMax
Tesla
Lyft
Medtronic
Adobe
Morgan Stanley
Workday Inc
Blackrock
Vipshop
Meta (Formerly Facebook)
Linde PLC
Micron
Lululemon
Ceconomy
Chipotle
Gilead
Naspers
Bristol Myers
The Cheesecake Factory
Glencore plc
British American Tobacco
ChargePoint Holdings Inc
Twilio
Intel
Lloyds
CNOOC
Electrolux
Wells Fargo
Sea
PG&E
Fedex
Citigroup
Peloton Interactive Inc.
eBay
Microsoft
JnJ
Bilibili Inc
Trump Media & Technology Group
AIA
Nasdaq
Air France-KLM
Allianz
Lithium Americas Corp
Procter & Gamble
Qualcomm
AMD
New Oriental
MercadoLibre.com
Mondelez
Lumentum Holdings
Two Harbors Investment aration
AstraZeneca
Norwegian Cruise Line
Unilever
GoHealth
PepsiCo
Barclays
PETROCHINA
Goldman Sachs
Eli Lilly
HSBC
Cellnex
Berkshire Hathaway
Jumia Technologies
HDFC Bank
RTX Corp
Bayer
Bank of America
Chevron
ADT
DoorDash
Marriott
Nike
AT&T
GSX Techedu
Robinhood
Telecom Italia
Deliveroo Holdings
TUI
Freeport McMoRan
Toyota
BioNTech
Airbnb Inc
Alibaba
Verizon
Nio
Eni
Ford
Volkswagen
UnitedHealth
Shopify
China Life
Snap
Christian Dior
Conoco Phillips
Lufthansa
Tencent
Moderna Inc
Salesforce.com
Broadcom
Diageo
Toro
Cinemark

Account Type

Direction

Quantity

Amount must be equal or higher than

Amount should be less than

Amount should be a multiple of the minimum lots increment

USD Down
$-

Value

$-

Commission

$-

Spread

-

Leverage

-

Conversion Fee

$-

Required Margin

$-

Overnight Swaps

$-
Start Trading

Past performance is not a reliable indicator of future results.

All positions on instruments denominated in a currency that is different from your account currency, will be subject to a conversion fee at the position exit as well.

J.P. Morgan says Alphabet share price reaction will make markets “cautious” of AMZN, META

“In terms of lateral implications for AMZN & META … the share price reaction will likely make investors more cautious on crowding in these names,” J.P. Morgan analyst Doug Anmuth wrote in a note released Wednesday.

However, the analyst saw Alphabet’s Google Cloud results as good news for Amazon Web Services: “Google Cloud having mostly worked through optimizations and starting to see Gen AI revenue contributions should be positive for AWS”.

Anmuth, however, is less convinced about a positive digital advertising impact for Meta.

“GOOG/L will likely curb some of the META advertising enthusiasm, but we’d still expect META to have above guidance revenue in 4Q,” he wrote.

Microsoft margins growing faster than Google’s, notes Melius Research

The revenue from Google Cloud also experienced a notable increase of 25.7% compared to the same quarter last year.

Melius Research analyst Ben Reitzes, however, pointed out that the growth was overshadowed by the company's profit margins — especially in comparison to its competitor, Microsoft.

“While the rebound in Google Cloud (GCP) was a welcome sight, it may take some time for Google’s commitment to efficiency to pay off,” he wrote, noting that overall operating margins of 27.5% were below consensus of 27.9% and down 30bps from last quarter. He added:

“These margins are 16 whole percentage points below those of Microsoft’s and MSFT is growing faster than Google on the top line”.

Reitzes noted that Microsoft was able to beat margins while also beating cloud and AI at the same time when it reported fiscal second-quarter results Tuesday.

“Our checks had detected upside in GCP, but it is clear to us that Google really needs to prove it cares a lot more about margins if it is going to take market cap from Microsoft, Meta, Amazon and even Apple,” he wrote. “While 3 of these Magnificent’s are yet to report 4Q, they all have shown more recent upside for various reasons due in part to margin upside.”

Over the past year, Alphabet shares have surged by 50.8%, while Amazon and Meta have seen gains of 51.2% and 161.3%, respectively.

Microsoft stock outpaced the three firms with a 61.7% rise, while Apple shares grew by 29.3%, against the backdrop of the S&P 500 index's 19.6% rise.

When considering shares and indices for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.

Latest news

Wednesday, 6 November 2024

Indices

U.S. presidential election market volatility drives Bitcoin prices to reach a historic high

Stock market rally

Tuesday, 5 November 2024

Indices

US Election Results Trigger Stock Gains Across Europe, Asia, and US

US Election Trump's victory

Tuesday, 5 November 2024

Indices

Trump Victory Spurs Market Gains and Economic Shift Expectations

Tuesday, 5 November 2024

Indices

US election: bitcoin price (BTC) surged to new record as Trump leading ahead

Live Chat