Alphabet Inc (GOOG)

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Stocks To Watch This Week: Alphabet (NASDAQ:GOOGL)
By: Investing.com | July 24, 2022

• More than a third of S&P 500 companies are reporting earnings next week.
• Alphabet sales may get a hit from the possible spending cut on digital ads and Russian war.
• Amazon’s e-commerce business is facing a sharp slowdown as people shift their spending pattern after the pandemic.

Earnings releases from some of the largest US companies may help provide direction for investors this week who are looking for signs of weakness in consumer demand amid a threat of recession.

More than a third of S&P 500 companies are reporting, including tech and industrial giants that have global footprints and have the latest update on how inflationary pressures and war in Europe are impacting consumer behavior.

In addition to major earnings announcements, the US Federal Reserve will also announce its decision on interest rates this week amid expectations that a 75 basis point jump is a done deal. The Fed has been pursuing the most aggressive monetary tightening in decades to cool down the economy and tame a four-decade high rate of inflation.

Below, we've short-listed three stocks from different sectors we’re monitoring as Q2 earnings season ramps into full swing:

Alphabet

Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG), the parent company of Google, will be reporting second-quarter 2022 earnings on Tuesday, July 26, after the market close. On average, expectations are for earnings per share of $1.28 on revenue of $70.04 billion.

Google’s Q2 results are likely to be impacted by the Russian war in Ukraine, a worsening macro environment in which companies are cutting their ad spending, tougher comparisons against pandemic highs and changing foreign exchange rates.

Alphabet Earnings History


Alphabet Earnings History

Ahead of the earnings announcement, some equity analysts have lowered estimates for YouTube sales in part to reflect the heightened competition from ByteDance Ltd.’s TikTok video app.

Google is also facing a tougher regulatory environment in Europe. Google’s second-largest business line, its network system that runs ads elsewhere on the web, was likely limited by new regulations in Europe that restricted ad targeting.

Google stock, which has lost more than 25% this year, closed at $107.90 on Friday.

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