Google stock has soared 35% in 2024 due to interest in AI, but faces antitrust lawsuit

From Investor’s Business Daily: 2024-07-05 10:27:00

Alphabet, Google’s parent company, is set to report second-quarter earnings in late July, but investors will need to wait to hear from the new CFO. Google stock has soared 35% in 2024 due to interest in AI. Long-term holders may consider taking profits as technical ratings remain strong but institutional ownership could be better. Alphabet ranks 26th in the IBD 50 list of growth companies.

Google typically reports Q2 earnings on the last Tuesday in July, expected to be July 30 in 2024. Analysts predict 27% EPS growth to $1.83, with revenue up 13% to $84.1 billion. Newly appointed CFO Anat Ashkenazi will start on July 31, potentially impacting Q3 earnings. Google had significant Q1 earnings exceeding consensus estimates and announced its first-ever dividend and stock buyback.

Google is investing heavily in AI and aims to grow its operating margins in 2024 despite rising capital spending. Bank of America forecasts a significant increase in Google’s free cash flow over the next few years. Alphabet is also focusing on cloud computing and YouTube as key areas of growth. YouTube Shorts now sees 70 billion daily views and cloud computing is a key battleground against Amazon and Microsoft.

Google faces an antitrust lawsuit by the Justice Department, accusing the company of maintaining a search monopoly through exclusionary agreements. A ruling could result in a breakup of Google or changes to its search engine promotion. The company’s cash reserves have helped it withstand billion-dollar fines from the EU. Google is also launching new digital advertising platforms to attract more advertisers, automating campaign management across various Google platforms.



Read more at Investor’s Business Daily: Is Google Stock A Buy With Earnings Due, New CFO Waiting In The Wings?