In the period that ended June, Wall Street is looking for the Mountain View, Calif.-based tech giant to deliver adjusted earnings of $8.25 per share, down about 2% from last year’s profit of $8.42 per share, on revenue of $25.64 billion, which would rise almost 20% year over year.
The main drivers of the company’s business has been its search capabilities from Google, which accounted for more than 95% of in first quarter revenue.
As such, the management has looked for ways to offset declining mobile advertising value with higher clicks.
The $35-per month subscription service allows access to up to forty networks, along with YouTube creator content.
However, the company’s dominant advertising business, combined with $84 billion in net cash on the balance sheet with another $38 billion in operating cash flow, provides tons of reason to own the stock and expect higher future returns.