Earnings Preview: GOOG Hits New Highs and Reports After the Bell

Here’s what might be expected when Alphabet Inc. (GOOG, GOOGL), parent of search giant Google, Nest and Waymo, reports Q1 2017 earnings after market close.

https://tickertapecdn.tdameritrade.com/assets/images/pages/md/Google search shown on smartphone
3 min read

There are several heavy hitters reporting earnings in the tech sector after market close today. Microsoft (MSFT), Amazon (AMZN), Intel (INTC), and Alphabet (GOOG, GOOGL), are all releasing first-quarter results later today. GOOG has been in the spotlight as it launches YouTube TV and shares hit all-time highs in trading yesterday, joining Apple (AAPL) as the one of only two companies in the United States worth more than $600 billion.

GOOG recently started rolling out YouTube TV, the company’s direct competitor to monthly cable, in several major cities over the past several weeks. It costs $35 per month and gives subscribers access to channels such as ESPN, Bravo, ABC, and CBS to name a few. It’s still too new to have any sizable impact on its results in the near future, but the company has said it plans to expand it to more cities. In addition to GOOG, other tech companies are focused on the movie and TV business; AMZN offers Prime Video as a standalone service and AAPL has Apple TV. As competition grows, Netflix (NFLX) remains the leader in Internet TV with over 100 million subscribers, according to its recent earnings press release.

Another area of focus is GOOG’s Other Bets division, which includes companies Nest, Waymo and Verily. Like the name implies, these are its bets on companies with future growth potential. These companies are focused everything from home automation and autonomous driving to life sciences. This division is a smaller portion of GOOG and advertising still makes up the bulk of its earnings.

In the first quarter, GOOG is expected to report earnings of $7.48 per share, down slightly from the $7.50 earned in Q1 2016, on revenue of $19.65 billion, according to consensus third-party analyst estimates. Last quarter, revenues topped expectations, but earnings missed analysts’ estimates due to the company earning less per click across its advertising properties. Google’s costs-per-click, the amount it receives from advertisers, fell 16% year over year. 


Advertising makes up a large portion of both company’s businesses, but Facebook (right) is more concentrated than Alphabet (left). TD Ameritrade clients can analyze potential revenue drivers of a stock on the Fundamentals tab on the thinkorswim® platformTrefis information and estimates used in Company Profile are provided by Insight Guru, a separate and unaffiliated firm. Not a recommendation. For illustrative purposes only. Past performance does not guarantee future results.

Alphabet Inc. Trading and Recent Options Activity

GOOG shares closed at $871.73 yesterday, just off the new all-time high of $876.05, potentially indicating high expectations for today’s earnings results. When expectations are high though, there can be more volatility if results disappoint. The stock is up almost 13% year-to-date, roughly in line with just under a 12% gain for the NASDAQ (COMP).              

The options market has priced in about a 3% potential stock move in either direction around GOOG’s earnings release, according to the Market Maker Move indicator on the thinkorswim® platform. In short-term options trading at the April 28 weekly expiration, calls were active at the 852.5 and 910 strike prices while puts were active at the 830 and 840 strikes. The implied volatility sits at the 61st percentile.

Note: Call options represent the right, but not the obligation, to buy the underlying security at a predetermined price over a set period of time. Put options represent the right, but not the obligation to sell the underlying security at a predetermined price over a set period of time.


The year-to-date performance of Alphabet compared to Facebook (teal line) and the NASDAQ (purple line). YTD performance as a percentage is shown on the right side of the chart. Chart source: thinkorswim® by TD Ameritrade.  Data source: Standard & Poor’s. Not a recommendation. For illustrative purposes only. Past performance does not guarantee future results.

If you haven’t had a chance, check out what might be expected when Amazon (AMZN) reports Q1 earnings after the bell.

Good Trading,

Call Us

Probability analysis results from the Market Maker Move indicator are theoretical in nature, not guaranteed, and do not reflect any degree of certainty of an event occurring.

TD Ameritrade and all third parties mentioned are separate and unaffiliated companies, and are not responsible for each other's policies or services.

Inclusion of specific security names in this commentary does not constitute a recommendation from TD Ameritrade to buy, sell, or hold.


Market volatility, volume, and system availability may delay account access and trade executions.

Past performance of a security or strategy does not guarantee future results or success.

Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading subject to TD Ameritrade review and approval. Please read Characteristics and Risks of Standardized Options before investing in options.

Supporting documentation for any claims, comparisons, statistics, or other technical data will be supplied upon request.

The information is not intended to be investment advice or construed as a recommendation or endorsement of any particular investment or investment strategy, and is for illustrative purposes only. Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. Clients must consider all relevant risk factors, including their own personal financial situations, before trading.

This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union.

TD Ameritrade, Inc., member FINRA/SIPC. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2018 TD Ameritrade.

Scroll to Top