Wall Street is optimistic ahead of Google ‘s quarterly earnings announcement Tuesday as the tech giant’s advertising revenue growth shows signs of recovery. Google has remained more under-the-radar compared with some of the other FAANG names. Nonetheless, it is a top name in the AI arms race. It has invested heavily in generative artificial intelligence throughout the year, such as through its Bard AI platform , its competitor to ChatGPT. The company also unveiled its AI-powered platform Search Generative Experience , which marks one of the largest changes to its search engine. The rollout of the new search experience has raised concerns from website publishers, however, who worry that it could hurt traffic to their websites. The outlook of its search business also has been pressured by concerns that the digital ad market will be hurt by weakness in the economy. Even so, shares have rallied about 12% since it reported its second-quarter earnings in late July. That has outpaced the S & P 500’s decline of about 7.5% over the same period. It is one of the best-performing large-cap tech names of 2023, up 55.2%. The company will post its third-quarter results Tuesday after the bell. Analysts are forecasting earnings of $1.45 per share on revenue of $75.97 billion, according to LSEG, formerly known as Refinitiv . Google has managed to beat earnings and revenue consensus estimates for 13 of the past 20 quarters, according to StreetAccount. Investors will be keeping a close eye on Google’s search revenue growth, progress with the rollout of its generative AI tools and advertising revenue from YouTube. Ahead of Google’s quarterly announcement, several Wall Street analysts are staying optimistic, with some also notching up their forecasts. GOOGL YTD mountain Google shares have outperformed in 2023 Deutsche Bank ticks up price target Deutsche maintained its buy rating on shares, while raising its price target by $5 to $145. The new price target implies nearly 7% upside…
2023-10-24 10:06:00
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