Google parent company Alphabet reports fourth-quarter earnings on Tuesday as investors look for cloud growth

Google’s parent company Alphabet (GOOG, GOOGL) will report its Q4 earnings after the closing bell on Tuesday. The search giant is likely to face fewer headwinds in the online advertising space than social media platforms like Facebook (FB) and Snapchat (SNAP), which have been hit by changes in Apple’s (AAPL) iOS privacy settings.

Here’s what Wall Street expects from the company in the quarter, as compiled by Bloomberg, compared to its results in the same quarter last year.

  • Revenue ex-TAC [minus traffic acquisition costs]: $ 59.3 billion expected against $ 46.4 billion in Q4 last year.

  • Profit per. shares: $ 30.01 expected against $ 22.30 in Q4 last year.

Investors and analysts will pay close attention to the results of Alphabet’s advertising business, which is its main revenue driver, as well as its upcoming cloud business.

While privacy changes Apple has made to its iOS platform have affected advertisers, including Snap and Facebook parent Meta, Google is less affected by the new policy thanks to the large amount of data it collects through its own search and YouTube offerings .

Apple’s privacy changes primarily affect apps that collect user data as they cross the Internet. However, since Alphabet can extract data directly from users’ search results, it is not as prone to Apple’s actions.

“Our industry check suggests that Search surpassed Social in the quarter, [with] Search may benefit from a change in ad dollars related to iOS changes, even based on mixed ecomm / retail spending, ”wrote JP Morgan’s Doug Anmuth in an analyst note prior to Alphabet’s earnings.

Google Cloud growth will also be in the spotlight as Alphabet continues to plow money into the platform in an attempt to steal market share away from Amazon’s AWS and Microsoft’s Azure cloud services.

Anmuth predicts that Google Cloud will report losses of $ 705 million, about $ 60 million less than the company’s third-quarter earnings report.

“Cloud remains a long-term growth opportunity and a major investment area for [Google],” he said.

While the technology sector’s equities have been particularly volatile recently, shares in Alphabet have easily outperformed competitors’ equities.

As of Monday noon, shares of Alphabet had risen more than 46% in the last 12 months. It easily surpasses the wider S&P 500, which rose 19%. Shares of Microsoft, one of Alphabet’s biggest cloud rivals, rose 32%, while shares of Amazon fell 7.5%. Shares of Facebook – Alphabet’s biggest competitor in online advertising – rose 20%.

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