Google parent co. Alphabet reports earnings tomorrow
Yahoo Finance’s Dan Howley joins Seana Smith to break down what investors should expect from Alphabet's upcoming earnings report on Tuesday after the market close.
Video Transcript
SEANA SMITH: Hey, Dan, I want to switch gears here a little bit and talk about another tech giant that we watch very closely, and that's Alphabet. Now the company's set to report results tomorrow, earnings tomorrow. And the stock has held up relatively well when you compare it to broader market performance since the start of the year. What do you think investors should be prepared for tomorrow?
DAN HOWLEY: I think the main thing to look for is how badly the company was hit as a result of the outbreaks towards the end of March. That's really what we're hearing from different analysts or reading from different analysts that the company was tracking to do double-digit teens improvements year over year as far as revenue and that that was then just slammed into at the end of March there when lockdowns went into place.
And the big thing, obviously Alphabet, you know, for all of its different businesses-- Waymo and Verily and what have you-- it's still fundamentally an advertising-run company, and that's really what we're going to be looking is how badly was advertising hit towards the end of March and then going forward? So it'll be really Q2 when we get the biggest impact from the COVID slowdowns. And obviously we also heard Google itself looking to cut back on marketing as well as hires as a result of the slowdown. So it's going to be kind of a double whammy for them.
But then on the flip side, we'll look for increases in the amount of people using G Suite, it's Meet video-chatting platform, as well as YouTube because everyone's stuck inside, and you can just go down a YouTube whole for hours at a time and just waste a day away.
SEANA SMITH: All right, Howley. Well, you certainly will be watching. Those results are going to be after the bell tomorrow. Thanks so much for breaking that down for us.
