Google Q3 Earnings Analysis:
Google shares took a dive following their most recent earnings despite the company’s stronger than expected results. The drop in the stock is likely to Google’s inability to meet Wall Street’s expectations on the cloud computing side. Google reported earnings on the same day as Microsoft, which reported 29% growth in cloud computing, so analysts were quick to sell Google and buy up Microsoft shares after the results. Google’s overall revenue was up 11% from the year prior, coming in at $76.69B, and earnings per share came in at $1.55, above analyst expectations of $1.46.
Google’s post-earnings move took the company’s daily candle below the 100 day moving average for the first time since March, which is a bearish signal. The next available support Google has is 123.00, a break below can send the stock to 112.00-118.00. Before Google can regain its bullish trend, it needs to first recovery above the 100 day MA and fill the gap above 128.50 to 133.80.