The Nasdaq composite, S&P 500 index and Dow Jones
industrial average will start the week near record highs. Monday is
light for earnings, but it does boast quality. Google parent
Alphabet (
GOOGL) reports after the market close, ahead of fellow FANG stocks
Facebook (
FB) and
Amazon (
AMZN) later this week.
Cadence Design Systems (
CDNS) also is on tap late while IBD 50 stock
Hasbro (
HAS) releases results before the market open.
Alphabet
The Google parent is expected to deliver earnings of $8.15 a share
excluding various items, according to Zacks Investment Research. Some
estimates have $8.25. Either way, it would be a slim decline from $8.42 a
year earlier. Complicating the earnings report will be a $2.74 billion
fine from the European Union.
Net revenue should rise to $20.825 billion, up 19% vs. a year earlier.
While Alphabet gets the vast majority of its revenue in online
advertising, cloud computing has become a growth area. Amazon may be
looking over its shoulder regarding its dominant Amazon Web Services
division in regards to Google and
Microsoft (
MSFT), which reported booming cloud gains last Thursday.
Alphabet has a Composite Rating of 95, which means it outperforms 95%
of all stocks based on a variety of proprietary IBD ratings including
earnings. All-time winning stocks often have Composite Ratings of 95 or
better near the start of big runs.
Alphabet shares rose 0.1% to 993.35 on Friday
stock market trading, about 2% below a new
flat-base buy point of 1,008.71. An aggressive investor could see 994.09 as alternative entry.
Alphabet is up 25% in 2017, but that makes it a laggard next to fellow FANG internet giants Amazon (up 35%), Facebook (43%) and
Netflix (
NFLX) (52%).
Facebook reports earnings on Wednesday while Amazon is due Thursday....
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