Google EPS Way Up

April 24th MTR Subscriber Data Tracker

In today’s earlier post we highlighted the Alphabet (GOOGL) earnings and looked at the options markets and focused upon the at the money straddle breakevens. We targeted the Friday expiry at the money $157.50 straddle. The straddle was priced at $9.40 at the time, which was implying a 6% move. We liked the technical set up above $151.75 area and a move toward $165 made sense. We looked at the $162.5/$167.5 call spread priced at $1.45 a 2.45x net risk reward profile. Well Alphabet hit it out of the park after the closing, and announced a new $70Bn stock buyback to boot, here is the data from Zerohedge:

• EPS $2.81 vs. $1.89 y/y, smashed estimate $2.01 (Bloomberg Consensus)

• Revenue ex-TAC $76.49 billion, +13% y/y, beat estimate $75.4 billion

  • Total TAC $13.75 billion, +6.2% y/y, higher than estimated $13.66 billion

• Revenue $90.23 billion, +12% y/y, beat estimate $89.1 billion

  • Google Services revenue $77.26 billion, +9.8% y/y, beat estimate $76.31 billion

  • Google advertising revenue $66.89 billion, +8.5% y/y, beat estimate $66.39 billion

  • Google Search & Other Revenue $50.70 billion, -6.2% q/q, beat estimate $50.3 billion

  • YouTube ads revenue $8.93 billion, +10% y/y, missed estimate $8.94 billion

  • Google Network Revenue $7.26 billion, -8.8% q/q, beat estimate $7.13 billion

  • Google Subscriptions, Platforms and Devices Revenue $10.38 billion, -11% q/q, beat estimate $9.91 billion

  • Google Cloud revenue $12.26 billion, +28% y/y, missed estimate $12.32 billion

  • Other Bets revenue $450 million, -9.1% y/y, missed estimate $473.9 million

  • Operating income $30.61 billion, +20% y/y, beat estimate $28.86 billion

    • Google Services operating income $32.68 billion, +17% y/y, estimate $30.42 billion

    • Google Cloud operating income $2.18 billion vs. $900 million y/y, estimate $1.94 billion

    • Other Bets operating loss $1.23 billion, +20% y/y, estimate loss $1.12 billion

  • Operating margin 34% vs. 32% y/y, beat estimate 32.3%

  Number of employees 185,719, +2.7% y/y, estimate 183,718

The stock is up 4.82% in the after hours market per MarketWatch:

This is leading to a surge in other stocks as well, most notably META +4% as well:

So looks like tomorrow is setting up for a continuation run higher for equities. As far as the futures charts, the Nasdaq futures above 19200 area will target 19935/50 area now with support 19k:

The SP500 futures are bullish above 5340 and 5525 areas, 5420 is good support on the daily with 5660 the upside target now:

As far as the QQQ ETF, expect resistance to be heavy between 472/480 with multiple technical levels there, but buyers in solid control above 455 for now:

Ok that is it for now, we have all the MTR Subscriber data and trackers up next, we urge you to become a full subscriber and truly break through that barrier of understanding in regards to our global financial system.

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