Alphabet (GOOG, GOOGL) will announce its second quarter earnings on Monday, which experts say will be buoyed by sales from Google’s mobile ads and YouTube videos.
Here are five things you to expect from Alphabet’s earnings which will be reported after Monday’s close.
Related: Check out Microsoft’s latest cloud earnings here
1. Revenue Up 19 Percent Year Over Year
Alphabet is expected to report revenue of $25.6 billion, up 19 percent from $21.5 billion a year earlier, according to a report by CNBC. Other analysts are a bit more modest, with expectations that Alphabet will report $20.83 billion in revenue. Analysts expect Alphabet to report Earnings Per Share (EPS) of $8.25, which translates to a two percent YoY decline in earnings.
2. Massive EU Antitrust Fine to Hurt Profit
A hefty fine from European regulators last month will damage Alphabet’s profits this quarter, according to CNBC. In June the European Commission hit Google with a $2.7 billion penalty for violating antitrust laws. Alphabet said that it “will book an accounting charge for the entire amount in the quarter, which ended in June."
3. Analysts Watching “Other Bets”
According to Business Insider, other companies under Alphabet continue to lose money (companies like Waymo, Verily, and Nest). Alphabet reports these losses together instead of breaking out numbers for each company.
Alphabet’s “Other Bets” segments focus on areas like self-driving cars, artificial intelligence, Google Fiber, and smartphones, Nasdaq said. Analysts are keen to hear more about the self-driving car unit Waymo and “to what extent can growth in these areas make Alphabet a diversified company?”
4. Cloud and Hardware Expected to be Bright Spot
Analysts expect Google’s cloud business to “do well” in Q2 2017, despite trailing Amazon, Microsft and IBM. JPMorgan analyst Dough Anmuth said that though he is cautious in Q2 because of ongoing regulatory scrutiny, he remains positive on the stock longer-term and has a “long runway with mobile and YouTube, along with newer growth areas including cloud and hardware, and ultimately Waymo.”
In Q1 2017, Google said it would continue investing in data centers, hiring cloud engineers and product managers.
5. Alphabet Stock Could Crack $1,000 Soon
Shares closed Friday at $993.84, and analysts expect it soon to hit the $1,000 mark. Analysts expect that with a “top- and bottom-line beat on Monday, combined with a strong outlook, GOOGL stock would break back above $1,000 per share and stay there,” Nasdaq says.