Several FAANG stocks set for earnings reports over the week
After Netflix‘s bombshell earnings report last week, Google‘s parent company Alphabet is the next FAANG stock to disclose its results.
The report will be somewhat different to its predecessors, as Google announced that it‘d change its format. changes include moving its smart home appliance business unit, Nest, to the “Google Other“ from “Other bets“ segment, among other changes pertaining to new accounting requirements and revenue metrics for Google Network changing from per-click results to per-impression.
While Google is bagged up with all other Alphabet Inc. subsidiaries, the fact that it remains the company‘s largest revenue maker makes it so that analysts focus on its performance above all else.
Conversation about the size of tech giants and how it could stifle smaller startup competitors has been rampant among regulators and other global figures lately.
Google is expected to report $24.29 billion in revenue, pero third-party consensus estimates. Adjusted EPS is expected to rise to $9.21 from $7.73 in the same quarter last year. Year over year revenue growth is expected to reach 20.7%. As a means of comparison, Q4 2017, usually Alphabet‘s busiest time of the year, saw the company earn $25.9 billion in revenue.
The earnings report is due Monday, April 23rd once the day‘s trading session ends.
Hot topics to keep an eye on include the changes that the company will be making in its reporting style. Earlier in April, it said that it‘d change up how it reports unrealized equity securities, how ad metrics are measured and the way its Nest unit reports its revenue.
The report week will continue with Facebook‘s release on Wednesday. Amazon‘s own will go out to the public on Thursday. Another report due to be released this week worth noting even if not in the FAANG index, is Microsoft‘s. This last one will go live on Friday.