We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Google Cloud Strength Aid Alphabet's (GOOGL) Q1 Earnings?
Read MoreHide Full Article
Alphabet’s (GOOGL - Free Report) first-quarter 2023 results, scheduled to be released on Apr 25, are likely to reflect strength in its cloud arm, Google Cloud.
Google Cloud has turned out to be the key catalyst for Alphabet’s growth on the back of its strengthening cloud-service offerings.
GOOGL’s cloud offerings include Google Cloud Platform and Google Workspace, which have been continuously gaining momentum in the booming cloud computing market. Google’s growing investments in infrastructure, security, data management, analytics and AI have been major positives.
Alphabet has been consistently witnessing strong revenue growth generated by the underlined segment, which derives revenues from fees collected for Google Cloud Platform services and Google Workspace collaboration tools.
Revenues from the segment were $7.3 billion in fourth-quarter 2022. The figure accounted for 9.6% of the total revenues and exhibited year-over-year growth of 32%.
For first-quarter 2023, the Zacks Consensus Estimate for Google Cloud revenues is pegged at $7.34 billion, suggesting growth of 26.1% from the prior-year quarter’s reported figure.
Click here to know how Alphabet’s overall first-quarter performance is likely to have been.
Google’s strengthening efforts toward expanding its cloud services portfolio, data centers, availability zones and regions are likely to have helped it gain a good share in the highly competitive cloud market.
In the first quarter, Alphabet opened a cloud region in Turin, which marks its second such establishment in Italy. This is likely to have expanded the company’s reach to Italian cloud customers.
Alphabet’s growing momentum across regions like the North America, Latin America, Europe and the APAC on the back of strengthening Google Cloud Platform and Google Workspace offerings is expected to have driven its cloud revenues in the quarter under review.
Google’s growing efforts to strengthen its cloud platform with advanced AI techniques and deepening focus on generative AI are anticipated to have been major positives.
GOOGL’s efforts in integrating data lakes, data warehouses, data governance and advanced machine learning into a single platform are expected to have bolstered its prospects in the data cloud market in the to-be-reported quarter.
Google’s amplifying focus on providing a secure cloud infrastructure, owing to its growing cybersecurity efforts, is likely to have been another positive.
In this regard, Google’s Mandiant buyout is expected to have aided it in gaining strong momentum among customers in the cybersecurity market in the first quarter.
All these endeavors are likely to have contributed well to the first-quarter performance of Google Cloud.
Zacks Rank & Stocks to Consider
Currently, Alphabet has a Zacks Rank #3 (Hold).
Investors interested in the broader Zacks Computer & Technology sector may consider some better-ranked stocks like Salesforce (CRM - Free Report) , Arista Networks (ANET - Free Report) and Analog Devices (ADI - Free Report) . Salesforce sports a Zacks Rank #1 (Strong Buy), and Arista Networks and Analog Devices carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Salesforce’s shares have risen 15% in the past year. CRM’s long-term earnings growth rate is anticipated to be 16.75%.
Arista Networks’ shares have risen 31.2% in the past year. ANET’s long-term earnings growth rate is projected to be 14.17%.
Analog Devices’ shares have gained 19.8% in the past year. ADI’s long-term earnings growth rate is expected to be 10.5%.
Image: Bigstock
Will Google Cloud Strength Aid Alphabet's (GOOGL) Q1 Earnings?
Alphabet’s (GOOGL - Free Report) first-quarter 2023 results, scheduled to be released on Apr 25, are likely to reflect strength in its cloud arm, Google Cloud.
Google Cloud has turned out to be the key catalyst for Alphabet’s growth on the back of its strengthening cloud-service offerings.
GOOGL’s cloud offerings include Google Cloud Platform and Google Workspace, which have been continuously gaining momentum in the booming cloud computing market. Google’s growing investments in infrastructure, security, data management, analytics and AI have been major positives.
Alphabet has been consistently witnessing strong revenue growth generated by the underlined segment, which derives revenues from fees collected for Google Cloud Platform services and Google Workspace collaboration tools.
Revenues from the segment were $7.3 billion in fourth-quarter 2022. The figure accounted for 9.6% of the total revenues and exhibited year-over-year growth of 32%.
For first-quarter 2023, the Zacks Consensus Estimate for Google Cloud revenues is pegged at $7.34 billion, suggesting growth of 26.1% from the prior-year quarter’s reported figure.
Click here to know how Alphabet’s overall first-quarter performance is likely to have been.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Factors to Consider
Google’s strengthening efforts toward expanding its cloud services portfolio, data centers, availability zones and regions are likely to have helped it gain a good share in the highly competitive cloud market.
In the first quarter, Alphabet opened a cloud region in Turin, which marks its second such establishment in Italy. This is likely to have expanded the company’s reach to Italian cloud customers.
Alphabet’s growing momentum across regions like the North America, Latin America, Europe and the APAC on the back of strengthening Google Cloud Platform and Google Workspace offerings is expected to have driven its cloud revenues in the quarter under review.
Google’s growing efforts to strengthen its cloud platform with advanced AI techniques and deepening focus on generative AI are anticipated to have been major positives.
GOOGL’s efforts in integrating data lakes, data warehouses, data governance and advanced machine learning into a single platform are expected to have bolstered its prospects in the data cloud market in the to-be-reported quarter.
Google’s amplifying focus on providing a secure cloud infrastructure, owing to its growing cybersecurity efforts, is likely to have been another positive.
In this regard, Google’s Mandiant buyout is expected to have aided it in gaining strong momentum among customers in the cybersecurity market in the first quarter.
All these endeavors are likely to have contributed well to the first-quarter performance of Google Cloud.
Zacks Rank & Stocks to Consider
Currently, Alphabet has a Zacks Rank #3 (Hold).
Investors interested in the broader Zacks Computer & Technology sector may consider some better-ranked stocks like Salesforce (CRM - Free Report) , Arista Networks (ANET - Free Report) and Analog Devices (ADI - Free Report) . Salesforce sports a Zacks Rank #1 (Strong Buy), and Arista Networks and Analog Devices carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Salesforce’s shares have risen 15% in the past year. CRM’s long-term earnings growth rate is anticipated to be 16.75%.
Arista Networks’ shares have risen 31.2% in the past year. ANET’s long-term earnings growth rate is projected to be 14.17%.
Analog Devices’ shares have gained 19.8% in the past year. ADI’s long-term earnings growth rate is expected to be 10.5%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.