However, there is little doubt surrounding the future of the company. In its latest report, the company missed on the bottom line, to the surprise of many.
The recent negative revisions are definitely concerning, but GOOGL still boasts a Style Score of an A for Growth and is a Zacks Rank #3 (Hold). For the current fiscal year, earnings are expected to shrink marginally by 1.2% year-over-year. The $26.25 EPS estimate for the upcoming quarter reflects a slight 3.7% decrease in earnings from the year-ago quarter.
Below is a chart illustrating the performance of GOOGL shares over the last year, with the S&P 500 blended in as a benchmark.Īs with most of tech, analysts have been dialing back their earnings estimates quite rapidly. With stretched valuations, poor earnings growth, and ranking as a Zacks Rank #4 (Sell), I believe investors should heed caution and deploy a defense-first approach to this stock.Īlphabet GOOGL has evolved from primarily a search engine into a company with operations in cloud computing, ad-based video and music streaming, autonomous vehicles, and more. The story remains the same for the current fiscal year the $1.18 EPS estimate forecasts the bottom line shrinking by a notable 82%.Ĭurrently, it’s challenging to paint a bullish picture for the company in the short term. The $0.35 EPS estimate for the upcoming quarter reflects a nasty 85% decrease in earnings from the year-ago quarter. The bottom line is also forecasted to shrink significantly, with analysts dialing back their earnings estimates rapidly over the last 60 days – never a good sign.
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