Alphabet earnings: A $2.74 billion hit for Google, potential YouTube results for investors
As it gears up for a second-quarter earnings report scheduled for Monday, Alphabet Inc. is already accounting for a $2.74 billion hit and may be preparing to reveal some long-awaited numbers.The European Union’s antitrust regulator fined Alphabet GOOG, +0.49% GOOGL, +0.17% the record charge at the end of June after finding that Google promoted its own shopping service above others in its search results.
Though the company is still considering an appeal of the ruling, it says it will recognize this charge in this quarter’s results. The fine is not tax-deductible, so it will reduce Alphabet’s net income and earnings per share data by the full amount, the company says.
Alphabet Better Show Explosive Growth in This Key Business Again, or Else
Alphabet (GOOGL) is set to report 2017 second quarter earnings after Monday’s market close. The Silicon Valley giant is expected to report earnings of $8.25 per share, vs. the $8.42 per share the company reported in the year-ago period, according to analysts surveyed by FactSet.
Revenue is expected to come in at $20.9 billion, topping the $17.5 billion the company reported in the same quarter last year. Alphabet has topped analysts’ revenue expectations over the past four quarters.
Google Earnings…Could Be Confusing
Google is set to kick off techland earnings for next week after the close of regular market trading tomorrow. Wall Street expects Google to report $8.25 per share on revenues of $25.6 billion for the June quarter. Current Street consensus is for earnings of $8.45 per share on revenues of $26.7 billion for the current quarter ending in September.
Google is going to set aside the $2.74 billion fine levied by the European Commission (EC/EU) despite the fact that it has hired the top legal minds across the pond to fight the fine. The charge will be reported as a separate line operating item however given how the financial press tends to manufacture negativity any chance they get, investors should be wary of the headline risks. GAAP or no-GAAP, the fine is a one-time charge taken this quarter and has no bearing going forward.
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On the Tape Today | 7-24-17
FB-Facebook Inc showing 3 days of indecision after solid bullish momentum. I'm game planning for a decline to bid into. Looking to place a $162 bid with a stop loss on a close below $160. Target on a new long if filled comes in at $175,
SPY ETF price action closed strong again but the daily candlestick is misleading.
The bearish gap lower was nothing more than a neutral day of trading that ultimately formed a “swing high.” A swing high is a bearish reversal of momentum. If you are a student of the Order Flow Masterclass, you also recognize this as a “well-offered” candlestick.
Although it is a short-term pattern for timing entries and exits, and spotting momentum to trade, the price action will take on much more significance if it forms another well-offered day. If it does, this means we will have followed the recent saturation point with a swing high followed by well offered.
The bullish order flow clearly holds the high ground but we see other clues that are sounding the alarm. Maybe not an alarm, moire like a whisper, but one that should not be ignored. If the stock market should happen to trade lower, close on the lows and do so with increased volume, AND we get a rising $VIX… well then we have something new.
I want to be clear, I am not calling a top, but simply showing you tape reading. Reading the tape means you put the pieces together and start to form conclusions. You start to make “if-then” scenarios. Then you are prepared for anything. You aren’t blindsided if your game plan doesn’t unfold according to plan.
This is how professional traders make money month-after-month. Tape reading is different from chart reading. If you’re struggling to get profitable, you’re most likely not going deep enough.
Read this post a few times, you’ll start to see how I am putting the pieces together to assess probabilities, which will affect my trade management. I know what I’m going to do, always, before it happens.
Stock Market Sector Performance
Stocks to Trade | 7-24-17 Monday Edition
Bullish Momentum: COF, SRPT, NFLX, KMX, VRTX, HAIN, TTWO
Bearish Momentum: slza, crzo
Bullish Order Flow: NFLX, KMX, AAOI, CELG, BDX, BA, AGN, AMGN, AET, NVDA, ACN, UNH, AAPL, FB, AVGO, BABA, ADSK, WDC, ADBE, AMZN, TSO, RH
Bearish Order Flow: slca, fl, nfx, hog, tjx, rost, cost, dks, low
Double Normal Volume: CCI, V, COF, SRPT
Inside Day: kmi, pfe, csx, low, hd, pypl, kr, wmb, bby, dis, dhr, pm, aig, cvs, nue, teva, cag, adm, cf, amgn, aa, lb,fslr, mpc, ctrp, dks
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