Google To Focus On AI Positioning, Impact Of Layoffs And Shareholder Returns After Q4 Earnings

Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) aka Google, will be reporting its fourth-quarter earnings on Jan. 30. Wall Street expects $1.59 in EPS and $85.22 billion in revenues as the company reports after market hours.

Established in 1998 by Sergey Brin and Larry Page, Google is a $1.9 trillion American search engine and subsidiary of Alphabet Inc. Playing a central role in the online experience of over 70% of global internet users, the company is a powerhouse in various technological domains.

Google’s diverse forays span from artificial intelligence, online advertising, search engine technology, cloud computing, computer software, quantum computing, e-commerce to consumer electronics.

Here’s what analysts will be focusing on, and how the stock currently maps against Wall Street estimates.

Google Investment Thesis 

Google presents a compelling investment opportunity with robust financials. Strong revenue growth and expanded margins contribute to impressive net income expansion. Its core businesses like Google Search and YouTube already thrive, while Google Cloud is steadily gaining substantial market share.

Despite the competition, Google’s dominant technology assets and commitment to shareholder returns enhance its investment value. Strategic balance sheet cleanup has led to improved operating income, notably from core services and a positive impact from Google Cloud.

As a technology leader, Google’s DeepMind division excels in artificial intelligence. Despite commercialization challenges, Google’s underlying language models remain competitive. The shift of Google DeepMind + Research to a separate corporate costs division underscores the company’s substantial AI investment. Aggressive share repurchases demonstrate Google’s focus on increasing shareholder returns.

The company’s dedication to open-source projects reflects its technological prowess. Google’s strong financials, strategic moves, and leadership in cutting-edge technologies make it an attractive, long-term investment opportunity.

Also Read: Tech Titans Microsoft, Apple Lead ‘Magnificent Seven’ Earnings Wave This Week: Can Mega-Caps Ignite Market Optimism?

Google Analysts’ Focus & Consensus Ratings

Q4 Analysts’ Focus: Analysts will be assessing Google’s positioning in the AI space focusing on whether…