The Silicon Valley giant is expected to report earnings of $8.25 per share, vs. the $8.42 per share the company reported in the year-ago period, according to analysts surveyed by FactSet. Revenue is expected to come in at $20.9 billion, topping the $17.5 billion the company reported in the same quarter last year. Alphabet has topped analysts' revenue expectations over the past four quarters.
The stock is trading up 25.25% year-to-date to $972.92 as of Friday. Shares of the company briefly traded above the $1,000 mark in June but were hurt by the tech selloff in late June and early July as investors worried the big tech names had risen too much in 2017. The stock has been on an upward slope since July 6.
Investors will be paying close attention to Google's paid clicks, which rose an impressive 44% year-over-year for the previous quarter as it rides the strong mobile search trend, as well as YouTube's growth. The increase topped expectations for 30% growth from the year-ago period and showed significant growth from the 36% growth in the previous quarter. In addition, paid clicks on Google properties rose 53%, vs. expectations for 33% growth.
YouTube launched a $35-per-month digital TV service in April to compete with online TV rivals DirecTV Now, Sling TV and Hulu. The service could potentially outdo its rivals if it can convert even a fraction of its 1.5 billion YouTube users into YouTube TV members. Investors will be looking for any indication as to how the offering is performing so far.
Finally, European Union regulators fined Google for a record $2.7 billion in June for being impartial to its comparison-shopping services in its search results. Google said it will "review the formal decision, but expects that it will accrue the fine in the second quarter of 2017," according to an 8-K filed with the SEC.
Earlier this week, JPMorgan analyst Doug Anmuth released a note to investors saying he still sees long-term upside for the company based on its cloud business and its role in autonomous vehicles. Google's Other revenue, which includes Pixel sales, cloud services, and Google Play, grew 49% to $3.1 billion last quarter.
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