Google (GOOGL) EPS Cheat Sheet

Core Viewpoint - Google is set to report its third-quarter earnings on October 29, with expectations of significant year-over-year growth in both earnings and sales [1] Wall Street Expectations - Analysts expect Google to earn $1.83 per share for Q3, reflecting an 18.06% increase year-over-year, with projected sales of $72.85 billion, representing a 13.73% growth [1] Implied Options Move - The options market indicates a potential price movement of approximately ±6% following the earnings report [2] Post-EPS Price Reaction History - Historically, Google has experienced a decline in stock price after earnings in 3 of the last 5 quarters, with an average surprise of 9.60% over the past four quarters [3][4] Historical Valuation & Valuation vs. Peers - Google's current price-to-earnings ratio stands at 23.71x, which is considered low compared to its historical range of 17x to 37x, making it the cheapest among the "Magnificent 7" tech stocks [6] Technical Levels & Information - Key technical levels for Google include a 200-day moving average approximately 3.4% lower at $161.29, with short-term resistance at $169.16 and an all-time high of $191.75 [7] Potential Catalysts 1. Cloud Business: Google Cloud generated over $10 billion in Q2, accounting for about 12% of total revenues, with a year-over-year growth of 28.8% [9] 2. Artificial Intelligence: The AI segment, particularly the Gemini large language model, is expected to grow at a CAGR of around 50% until 2030 [10] 3. Search Cannibalization Commentary: Concerns exist regarding AI potentially cannibalizing Google's search ad revenue, although no evidence supports this claim yet [10] What to Not Expect - The ongoing legal battle with the Department of Justice regarding monopolistic practices is unlikely to be a topic of discussion in the upcoming earnings call [11]