Ahead of Alphabet Earnings, Here's What Barchart Data Says Comes Next for GOOGL Stock

Options market sentiment suggests Alphabet (GOOG) (GOOGL) stock will rip higher after the tech titan reports its fiscal Q3 earnings after the market closes on Oct. 28. Consensus is for the tech giant to report $2.94 in earnings per share (EPS) for its third financial quarter, which would represent year-over-year growth of just 2.44%. 

Alphabet shares have been under pressure amid a broader artificial intelligence (AI) rout in recent months. As of this writing, it’s trading more than 20% below its YTD high in mid-May. 

Where Options Data Suggests Google Stock Is Headed

In the derivatives market, a put-to-call ratio of less than 1.00x is typically interpreted as bullish. For GOOGL, that metric for contracts expiring Oct. 30 sits at 0.31x currently. And the upper price on those options contracts, according to the latest data from Barchart, is set at $334, signaling potential for a more than 5% rally on the back of the quarterly release. 

On the flip side, however, the technical setup heading into Alphabet’s Q3 earnings event paints an entirely different picture. GOOGL stock currently sits firmly below its key moving averages (MAs), with an RSI in the late 20s indicating intense selling pressure. 

GOOGL Shares Are Attractively Priced Heading into 2027

Investors should note, however, that Google stock is one of the more attractively priced among AI names heading into 2027. At the time of writing, it’s trading at a forward price-to-earnings (P/E) multiple of about 15x, which makes it meaningfully cheaper to own than each of its Magnificent 7 peers. 

A quick look into Alphabet’s historical performance: The company often closes each of the final three months of a calendar year in the green — a seasonal pattern that makes it even more attractive for the near term.

How Wall Street Recommends Playing Alphabet

Wall Street analysts appear fully convinced that the recent selloff in Alphabet has created a buying opportunity for long-term investors. 

The consensus rating on GOOGL shares remains at “Strong Buy,” with the mean price target of about $431 indicating potential upside of about 35% from here. 

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.