Google to be watched on Tuesday, NOT for the affair.

A report that Elon Musk had a brief affair with Sergey Brin's wife has dominated the internet lately and sparked a war of words between Musk and the Wall Street Journal.

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In investing, you can be amused by this type of news, but you shouldn't be distracted by the noise. We should pay close attention to the $Alphabet-A(GOOGL.US)$ earnings report due after the market closes on Tuesday, July 26.

What to expect:

Earnings per share: $1.3 to $1.36 in the first quarter, down 5% year over year

Revenue: $70.25 billion compared to $68.01 billion in the first quarter, up 13% year over year.

How does Google perform over the past quarters?

moomoo - GOOG - Financial - Indicators

What to look for?

1. Advertising segment pressure

The advertising sector would be one of the first to feel the pain as the economy slows.

$Snap Inc(SNAP.US)$ weaker-than-expected report on Friday warned of slowing demand from advertisers and increased competition from TikTok and others amid a sluggish economy that spooked the market.

Google likely is better positioned than peers for an advertising slowdown, says Bank of America analyst Justin Post.

While more revenue cuts for advertising stocks are likely, we think Alphabet has more relative revenue stability given its breadth of advertisers, he said in a report.

2. Cloud business growth

The Google Cloud unit performed well across all business segments, with revenue up 43.8% year over year to $5.8 billion in Q1.

Whether Google's endeavors in the cloud computing market can work and ease the slack in the advertising business has become the top concern of all Google investors.

Shares of Alphabet have fallen 23% since the start of the year, slightly better than the performance of the technology-dominated $Nasdaq Composite Index(.IXIC.US)$ over the same period.

Deciphering data and doing research is a must as a professional investor. The secrets of the company's operations, future guidance and the progress of development plans will be revealed or hidden in these figures.

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