Zinger Key Points
- Analysts on average expect Alphabet will print EPS of $1.06 on revenues of $68.83 billion.
- Alphabet is trading in a triangle pattern, consolidating mostly sideways heading into the event.
- Get New Picks of the Market's Top Stocks
Alphabet, Inc GOOG GOOGL is set to print its first-quarter earnings after the market close on Tuesday. The stock has been consolidating mostly sideways since April 4.
When Alphabet printed its fourth-quarter earnings on Feb. 2, the stock gapped down the following day and closed 3.29% lower.
For that quarter, Alphabet printed earnings of $1.05 per share, which missed the consensus estimate by 0.11%. The Google parent company reported quarterly revenues of $76.05 billion, which missed the estimate by 0.01%.
For the first quarter, analysts on average expect Alphabet will print EPS of $1.06 on revenues of $68.83 billion.
Traders and investors are interested in hearing how far along Alphabet is in integrating AI into its search function to complete with Microsoft’s ChatGPT. Read more here...
From a technical analysis perspective, Alphabet looks set to choose a direction for the longer-term following the print because the stock is trading in a triangle pattern, set to hit the apex on April 28. Of course, holding a stock or options through earnings is akin to gambling because a stock can fall on a positive print and soar on negative results.
Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.
The Alphabet (GOOG) Chart: Alphabet started to trade above an ascending trendline on March 30 and under a descending trendline on April 14 after t
he stock formed a bearish double top pattern at the $109.63 level. Within the trendlines, Alphabet has developed a triangle pattern on the daily chart.
The pattern leans bullish because Alphabet was trading higher before entering into consolidation. The stock is also trading above the 200-day simple moving average (SMA) and if Alphabet can hold above that level, the 50-day SMA will eventually cross above the 200-day, which would cause a golden cross to form.
If Alphabet breaks up or down from the triangle pattern on higher-than-average volume, bullish and bearish traders will gain a sense of future direction. If the stock breaks down from the pattern, a longer-term downtrend could be on the horizon and the stock could back-test support at the 200-day SMA.
Alphabet has resistance above at $106.53 and near the $110 mark and support below at $101.08 and $97.79.
Read Next: Photo via Shutterstock.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
