Google: Looking At Arguments For Strong Q3 Results
Summary
- Google is scheduled to announce its September quarter earnings on October 29th, after the market closes, and I am bullish heading into the announcement.
- Analysts are forecasting revenue of about $86.2 billion and operating profits of $27.4 billion, reflecting YoY growth of 12% and 14%, respectively.
- Given a highly supportive macro environment for advertising, I believe analyst estimates are reasonable.
- Google search engine gained market share in Q3, while YouTube growth outperformed growth for competitor platforms Instagram, Facebook, and TikTok.
- In terms of valuation, Google stock appears attractively priced, trading around 17x EV/EBIT for 2025 estimates. Buy.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of GOOG, GOOGL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Not financial advice.
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