Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Alphabet Q3 2024 earnings preview: latest insights into investor expectations

Explore what to expect from Alphabet Q3 2024 earnings report, with a focus on its share price performance, cloud services growth, AI integration, and how these factors might influence future market trends.

Source: Adobe

Key date for your calendar

Alphabet Inc. will release its Q3 earnings on 30 October 2024 at 7.05am (AEDT). Alphabet’s share price has lagged behind the benchmark S&P 500 so far this year.

Will the upcoming earnings provide the boost needed for the tech giant to catch up?

Expectations for Alphabet's Q3 earnings

  • EPS: estimated at $1.84, representing an 18% increase from Q3 2023
  • Revenue: estimated at $86.23 billion, up 10% from the year-ago quarter

It’s worth noting that Alphabet Inc. has consistently exceeded Wall Street’s projections for both earnings per share (EPS) and revenue over the past four quarters. In Q2, the tech giant reported an EPS of $1.89, exceeding the anticipated $1.84.

Key areas to watch in Q3

  • Cloud growth vs advertising pace

The strong demand and growth from cloud services have driven Alphabet’s impressive 14% year-over-year growth in the recent quarter. This division saw a remarkable 28% increase in quarterly revenue, surpassing $10 billion for the first time.

In contrast, Google's advertising business — the cornerstone of its revenue — has been growing at a slower pace in recent quarters. Investors will be keen to evaluate how the company’s advertising revenue has performed amid economic uncertainties and intensified competition from rivals like Meta Platforms Inc.

Alphabet Q2 2024 revenue breakdown by segment

Alphabet Q2 2024 Revenue Breakdown Source: Alphabet Inc
Alphabet Q2 2024 Revenue Breakdown Source: Alphabet Inc

  • Advancements in AI integration

Despite the waning artificial intelligence (AI) frenzy, investors are eager to learn about Alphabet's advancements in AI integration across its platforms and the resulting technical synergies. Beginning in Q2, Alphabet consolidated the teams of Google Research and Google DeepMind to concentrate on developing AI models and accelerating integration efforts. Any positive update from this newly formed AI Plus division is likely to boost investor confidence in Alphabet's outlook for future tech.

  • Recent concerns and financial risks

Despite reporting stronger-than-expected Q2 earnings, Alphabet's stock price dipped on the previous earnings date (24 July), primarily due to its conservative forward guidance, which resulted in a 5% decline in a single day.

Additionally, concerns grew regarding the returns from the tech giant's significant investments in artificial intelligence. As of 30 June, Alphabet's research and development expenses had risen to $23.8 billion, up from $22.05 billion in the same quarter last year.

Alphabet share prices

Compared to benchmarks like the broader S&P 500 and Nasdaq 100 indexes, Alphabet's share price has underperformed over the past two quarters and year-to-date.

Market performance comparison: S&P 500, Nasdaq, and Alphabet 6-month and YTD returns

However, analysts maintain a generally positive outlook for Alphabet shares. According to TradingView, 44 out of 67 analysts have assigned the stock a "strong buy" rating, with no analysts recommending a sell. In terms of price targets, the average one-year projection from 58 analysts stands at $202, indicating a 22% increase from the closing price of $165 on 22 October 2024.

Alphabet stock price target and analyst consensus

Alphabet technical analysis

From a technical standpoint, as of 22 October, the price has risen to test the descending trendline established since July. A breakout above this critical resistance could pave the way to the early October peak at $168 and the 100-day simple moving average (SMA) around $169.

Conversely, failing to surpass this major hurdle heightens the risk of losing current support, potentially resulting in a decline toward the 200-day SMA, located in the $160–161 range. A drop below $160 would position the price under all major moving averages (MA), indicating a potential bearish shift.

Alphabet daily chart

Conclusion

Alphabet Inc.'s Q3 2024 earnings report is poised to provide deeper insights into the tech giant’s financial vitality and future prospects. Investors will closely examine critical areas like advertising, cloud services, and AI advancements, all while reflecting on the intriguing movements of its share price. With heightened scrutiny, this report promises to shed light on how well Alphabet is navigating the complexities of the tech landscape.


The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.