What to Expect from Alphabet Stock After Earnings

The stock tends to shift higher after earnings

Deputy Editor
Oct 20, 2022 at 3:12 PM
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Shares of Alphabet Inc (NASDAQ:GOOGL) are marginally higher today, last seen up 0.07% at $99.70 as the Big Tech juggernaut prepares to report its latest quarterly financial results. The Google parent will step into the earnings confessional after the close on Tuesday, Oct. 25 and report third-quarter earnings and revenue. Below we will take a look at how GOOGL has fared on the charts, and what the options market is pricing in for post-earnings moves.

After beginning the year above the $150 level, GOOGL notched an all-time high of $151.55 by Feb. 2. The broader-market selloff was quick to take a toll on Alphabet stock's gains, sending the shares back below the 140-day moving average. In fact, this trendline has been a source of overhead resistance for the share since January. Year-to-date, the security now sports a 31% deficit.

GOOGL Chart October 202022

Digging into Alphabet's earnings history, the stock has closed higher the day after reporting in all but one of the past eight quarters -- a 3.7% dip in February. During this time frame, Alphabet stock averaged a 5.1% swing, regardless of direction. This time around, the options market is estimating a larger-than-usual, 7.7% move for Wednesday's trading.

In the options pits, call rule the roost. Specifically, Alphabet stock sports a 50-day call/put volume ratio of 1.82 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the 76th percentile of its annual range. Further, GOOGL's Schaeffer's put/call open interest ratio (SOIR) of 0.78 stands higher than just 25% of annual readings, indicating a call-bias amongst short-term options traders.

Leading up to the event, UBS cut its price target to $120 from $132. Additional adjustments lower could be on the way, too, as the equity's 12-month consensus target price of $140.68 is a hefty 40.7% premium to current levels.


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