Alphabet (toget) outcome Q1 2021

Sundar Pichai, CEO of Google Inc.

Bloomberg | Getty Images

Alphabet is expected to post earnings for the first quarter after the bell on Tuesday.

Here’s what Wall Street expects:

  • Merits: According to Refinitiv, $ 15.82 per share
  • Revenue: According to Refinitiv, $ 51.70 billion
  • Google Cloud Revenue: FactSet estimates $ 4.07 billion
  • YouTube ads: According to StreetAccount, $ 5.70 billion
  • Traffic Acquisition Costs (TAC): FactSet estimates $ 9.25 billion

As in the fourth quarter of 2020, the company is expected to continue seeing annual growth in terms of both sales and earnings.

During the first quarter, advertising and search spending returned faster as vaccine adoption and economic reopening increased. Wall Street expects Alphabet to be one of the biggest beneficiaries of the uptrend.

Google-owned YouTube became the winner of the pandemic in terms of social media websites, according to a recent Pew report. On the video platform, usage increased from 73% of adults in the US in 2019 to 81% in 2021. YouTube saw 47% year-over-year growth in advertising revenue in the fourth quarter of 2020 thanks to direct response ads.

YouTube also released its latest metrics for its TikTok competitor Shorts in the first quarter, which the company said had 3.5 billion daily views at the end of January. It also announced that it would expand to other countries, including the US, starting this year.

Wall Street will continue to look for growth in Google’s cloud unit, which first revealed its operating results in the fourth quarter of 2020. Although it posted a $ 1.24 billion loss in the fourth quarter, that was a jump in revenue from a year earlier, and the booming business portfolio is expected to result in higher revenue this quarter.

In March, Google announced a $ 7 billion investment to expand offices and data centers in 19 states, creating at least 10,000 full-time positions. It did when the company doubled in size after moving its workforce back to physical offices after the pandemic.

In early March, Google made it clear plans to end support for cookies for tracking internet browsers in Chrome by early 2022. The company will only use “data protection technologies” based on methods such as data aggregation.

Google completed its long-awaited acquisition of Fitbit in January, more than a year after first announcing the $ 2.1 billion deal. The first new device since signing the Google contract, the Fitbit Luxe, has been discontinued.

Just days after the official quarter ended, Waymo CEO John Krafcik, who brokered the self-driving automaker’s first external investment deals and oversaw its first public ridesharing service in 2020, announced that he was leaving the company.

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