Thread by @CityIndex_Josh

🔎 #Alphabet, the owner of #Google, releases results after markets close today.

☎️ A conference call with management is scheduled for 1330 PT (1630 ET).

Here is a 🧵 on what to expect from the #earnings today...

🐌 There has been a pullback in spending by advertisers and this is expected to see the company deliver its slowest revenue growth on record.

🛡️ While not immune, its monopoly over Search has helped it prove more resilient than its social media rivals like #Meta

☁️ Google Cloud is forecast to see sales rise 30%, but that would be the 7th consecutive quarter of slower growth.

Plus, unlike rivals #Amazon and #Microsoft, Google Cloud is in the red and not set to deliver a profit for several years.

💸 Meanwhile, costs continue to rise and hurt the bottom-line. This will be the 3rd consecutive quarter of lower earnings.

We saw the markets reward #Meta for prioritising efficiency, and Alphabet investors will hope it will follow with efforts to protect profitability.

✂️ We have already seen Alphabet cut 12,000 jobs.

But that could just be the start considering it is just 6% of its workforce, which has doubled in size since the start of the pandemic.

The outlook could remain tough for the current quarter but it is improving for 2023. Earnings are forecast to start growing again in Q2 and accelerate to double-digit rates in H2.

🤏 If it gets a grip on costs, then this may provide some upside to estimates.

Let's take a quick look at the $GOOGL chart before the results.

📈 Up 4.5% before the bell today

🚨 At 4.5 month high

❗ Testing 200-day moving average

⬆️ Volumes likely to rise for 4th consecutive day

That's it - you're ready for the results.

Thanks for reading.

You can find out more, including what consensus numbers to look out for, in our full preview here 👇
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