Alphabet (GOOGL) Stock Dropped Before Earnings. Can They Rally?

The Alphabet Inc Class A (NASDAQ: GOOGL) stock price was trading down 0.30% before the open as investors keep a close eye on the stock ahead of its Q1 2023 earnings results scheduled for release after the market closes today.

Of the critical issues that investors will be looking out for apart from the traditional metrics of revenues, profits, and other financial metrics, most analysts and investors will be keen to hear how the recent surge in AI-driven search has affected the company’s primary revenue source, advertising revenues.

WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.

Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.

5.0

Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Investors will be keen to hear Alphabet’s CEO, Sundar Pichai’s comments on how the company can integrate AI into its operations and, most importantly, create new revenue streams or earn higher revenues from its current operations. 

Sundar Pichai has already been vocal in advocating for the prudent use of Generative AI, which threatens to replace some crucial tech jobs, including coding and app development, as GPT4 can write programs and code that can be used by individuals and organisations alike. 

Google has already launched its generative ai search assistant, Bard AI, to compete with Microsoft’s Open AI bot, which has way more functionality as a large language model chatbot that can interface effortlessly with humans and generate answers based on the information fed into it by humans. 

However, investors will still be looking to determine if Google’s core advertising business is intact. Can the search giant continue growing its ad revenues despite the worldwide challenging economic conditions? 

As an investor, I look forward to reading the company’s earnings report with a focus on its financials and future outlook, including projects that Google intends to keep developing in the future, as these could turn into more revenue streams. 

*This is not investment advice. 

Alphabet (GOOGL) share price. 

The Alphabet (GOOGL) stock price was trading down 0.30% at $105.65, from Monday’s closing price of $105.97.