What To Expect From Google Parent Alphabet's (GOOGL) Q1 2019 Earnings

Google parent Alphabet Inc. (GOOGL - Free Report) shares have jumped roughly 22% so far this year to outpace the S&P 500’s 16% climb. Now, with first-quarter results out from some of its FAANG peers, including Amazon (AMZN - Free Report) , let’s see what investors should expect from Google’s first quarter 2019 financial results that are due out after the closing bell Monday.

Quick Overview

Google’s search engine is nearly ubiquitous today. The firm reportedly grabbed over 37% of total US digital ad spending in 2018, to blow by second-place Facebook’s (FB - Free Report) roughly 21% and third-place Amazon’s 4.1%. Going forward, the firm’s ability to attract advertisers will likely grow as Netflix (NFLX - Free Report) , Hulu, and soon enough Disney (DIS - Free Report) , Apple (AAPL - Free Report) , and other non-ad supported platforms proliferate.

Along with its web browser and search engine, Alphabet sells hardware such as its Pixel smartphones, Home smart speaker, and more. The firm also boasts a cloud computing business, an app store, and has bet on the future with divisions such as its self-driving car segment Waymo.

As we mentioned at the top, shares of GOOGL are up 22% in 2019 and 23% over the last 12 months. Jumping back over the last five years, investors will notice that shares of Google have roughly matched Apple’s climb, while crushing the S&P. GOOGL stock rests near its 52-week high heading into earnings at roughly $1,271 per share.

Q1 Outlook & Earnings Trends

With all that said, Alphabet’s Q1 revenue is projected to jump 20.6% from the year-ago period to reach $29.99 billion, based on our current Zacks Consensus Estimate. Investors should note that our revenue estimate excludes total traffic acquisition cost (TAC is the portion of revenues shared with Google’s partners and amounts paid to distribution partners and others who direct traffic to the Google website). In the fourth quarter of 2018, the firm’s non-TAC revenues came in at $31.84 billion, up 23.1% year over year.

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