Here's what to pay attention to when Google reports Q1 results
Justin Sullivan/Getty Images
The report comes as Alphabet's stock continues to break records, recently reaching all-time highs. The only company bigger than Alphabet by market cap? Apple.
Google, the core of Alphabet's business, has shown progress in the areas CEO Sundar Pichai has said he wants to focus on: YouTube, artificial intelligence, and consumer products.
Here's what you need to know ahead of Alphabet's earnings.
The numbers
Wall street consensus, according to Bloomberg is:
EPS, adjusted: $9.32
Revenue: $20.02 billion, which would be 21.6% year-over-year growth
YouTube
The big new thing at YouTube: YouTube TV.
YouTube TV launched in a few US cities a few weeks ago. The app itself is well-designed and video streams are reliable. But it's also missing a lot of content. There's a less-than-zero chance Google will disclose how many subscribers YouTube TV has so far, but expect to hear Pichai and team to brag about the successful launch.
Hollis Johnson
AI and voice control
Google is trying to inject artificial intelligence into all of its products, from search to the smart home. It's also increasingly interested in voice control thanks to the Google Assistant that lives in the Google Home speaker and newer Android phones.
But Pichai has struggled to explain how the company can monetize voice searches with ads. The challenge was highlighted in March when Google Home started playing an ad for the new "Beauty and the Beast" movie. Google pulled the spot after the internet lit up with complaints.
Google Home recently got a significant update. It can now sync with multiple user accounts, using voice recognition to switch seamlessly between them.
Other bets
Alphabet's other companies like Nest, Waymo, and Verily are lumped into their own category called Other Bets. These companies make up just a tiny fraction of Google's revenues, but the hope is that one of them will grow into the next huge business after search.
In the year-ago quarter, Other Bets revenues were $166 million with an $802 million operating loss. Investors will be looking for revenue growth and slowing losses.
Google I/O
Google's annual developers conference is the company's biggest event of the year where it announces new features for Android and other new products. This year's I/O starts May 17 with a big keynote presentation. Expect Pichai to tease the event a bit during Thursday's earnings call.
Get the latest Google stock price here.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Catan adds climate change to the latest edition of the world-famous board game
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- JNK India IPO allotment – How to check allotment, GMP, listing date and more
- Indian Army unveils selfie point at Hombotingla Pass ahead of 25th anniversary of Kargil Vijay Diwas