Alphabet Q3 Earnings Highlights: Revenue Beat, EPS Beat, Google Cloud Up 35%, 'Momentum Across The Company Is Extraordinary'

Transcript

00:00So Google reported right after the close yesterday, and let's give you those numbers as well as

00:07the reaction.

00:08So EPS came in at $2.12, beat the $1.84 estimate.

00:12Sales came in at 88.26 billion, beat the 86.3 billion.

00:18Google said Google Cloud revenues increased 35%, Google Services revenue increased 13%.

00:26So some strong numbers across the board and the stock, you know, popped initially and

00:33about like three, 4%.

00:35And I thought that was a little bit of a muted response because the numbers were pretty strong.

00:40And then it just kept climbing higher slowly.

00:42So like a lot of times you see a big move and then it sells off or reversal.

00:46You saw Google actually pop higher and then just continue to kind of creep higher as the

00:50afternoon went on.

00:52And the trading mechanics to why that happens.

00:55Like why do you get the pop and then the pullback, you know, like why does it not just

00:58continue to go straight up?

01:00And the simple answer is profit takers, where you've got people positioned, maybe bought

01:05the stock ahead.

01:06Maybe they have options, you know, and they're trying to lock it in.

01:10But the simple answer for you is why you see stocks like go like this.

01:14And then, you know, the check back or whatever, the check back is the profit takers.

01:17When you get that stabilization after the check back, that's telling you the stock wants

01:22to go higher.

01:23You know, where you start to stabilize and more buyers are starting to overpower the

01:27profit takers.

01:28The opposite doesn't occur.

01:30And why?

01:31Because there's not a lot of people who short stocks.

01:33So when you see a stock getting hammered, sometimes it just continues down.

01:37It's like, when's it going to stop going down?

01:40You don't always have the check back because you don't have, you have some put buyers maybe

01:44locking in.

01:45But for the most part, people bet on stocks.

01:48You know, the majority of people bet on stocks on the long side and not the short side.

01:53So that's why a lot of times the opposite, you know, doesn't happen.

01:56But we can go into details on some of this stuff.

01:58You know, it's not education hour here.

02:00So just wanted to take that minute to explain why that happened.

02:04I mean, here you are, right back where it gapped down from, I believe it was earnings

02:10back in July, gap fill at 183.33, all the way up to a pair of highs just above 185.

02:18I mean, to me, that just would be an absolute sweet target today if it gets to that area.

02:24Have no idea where to buy it, but boom, just blew it away.

02:28Now, like you said, let's see if you find any kind of profit taking here in Google.