Buy Google Stock Ahead Of Its Upcoming Earnings?
Alphabet (NASDAQ:GOOG) is set to publish its earnings on Wednesday, July 23, 2025. In the last five years, Google's stock has demonstrated a favorable one-day return in 55% of occurrences following its earnings announcements. The median positive return seen on these days was 4.8%, while the highest one-day positive return reached 10.0%.
Although the actual results compared to consensus and market expectations will significantly affect the stock's movement, comprehending these historical trends can be advantageous for event-driven traders. Event-driven traders generally consider two primary strategies:
Current consensus predictions for Google's forthcoming earnings report anticipate $2.18 per share on revenues of $93.73 billion. This suggests growth in comparison to the same quarter last year, which reported earnings of $1.89 per share with revenues of $84.74 billion.
From a fundamental perspective, Google currently boasts a significant market capitalization of $2.3 trillion. Over the past twelve months, the company produced revenues of $360 billion, generated $118 billion in operating profits, and declared a net income of $111 billion.
That being said, if you are looking for potential gains with less volatility than individual stocks, the Trefis High Quality portfolio offers an alternative — having surpassed the S&P 500 and delivered returns exceeding 91% since its inception. Additionally, check out –RGTI Stock: Path To 10x Growth
See earnings reaction history of all stocks
Alphabet's Historical Odds Of Positive Post-Earnings Return
Here are some insights regarding one-day (1D) post-earnings returns:
Further data for observed 5-Day (5D), and 21-Day (21D) returns following earnings are compiled along with the statistics in the table below.
5-Day (5D), and 21-Day (21D) returns following earnings
Correlation Between 1D, 5D, and 21D Historical Returns
A relatively less risky strategy (though not advantageous if the correlation is weak) is to comprehend the correlation between short-term and medium-term returns following earnings, identify a pair that exhibits the highest correlation, and carry out the appropriate trade. For instance, if 1D and 5D display the highest correlation, a trader could position themselves 'long' for the next 5 days if the 1D post-earnings return is positive. Here is some correlation data based on 5-year and 3-year (more recent) history. Note that the correlation 1D_5D signifies the correlation between 1D post-earnings returns and subsequent 5D returns.
Correlation Between 1D, 5D, and 21D Historical Returns
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