Loyal advertisers set to give Alphabet a red-letter day

FACEBOOK managed to allay fears last week that recent data scandals would drive away users and advertisers.

Now it is the turn of Google owner Alphabet. The web giant will become the last of the socalled FAANG stocks (Facebook, Amazon, Apple, Netflix and Google) to report earnings to investors tomorrow evening.

Alphabet, which also owns YouTube, has found itself embroiled in data controversies of its own.

Its shares got a boost last week after Facebook beat Wall Street expectations. Investors predicted that – like Facebook – advertisers would continue to work with Google and YouTube.

A similar uplift is expected tomorrow when Alphabet releases its own fourth-quarter earnings.

Analysts predict revenues will jump from $32 billion (£24 billion) a year ago to $39 billion, with earnings per share up from $9.70 to $10.86.

Baird analyst Colin Sebastian said recent checks with advertising and marketing partners were ‘consistently healthy’, meaning they plan to keep using Google.

It seems, as far as investors go, that data disgraces are a mere storm in a teacup.

EMMA WALMSLEY will impress investors on Wednesday when she unveils G lax oS mi th K line’ s annual results. That’s according to Deutsche Bank analysts, who reckon the drugs giant’s figures will come in at the top end of guidance.

Deutsche forecasts sales up 1.5 per cent to £30.65 billion and adjusted pre-tax profits flat at £7.9 billion. The share price will receive a shot in the arm if its guidance is set high.

That will be affected by the launch of Mylan’s generic rival to Advair, Glaxo’s best-selling product that treats asthma and Chronic Obstructive Pulmonary Disease.

That deal with Pfizer to merge and spin off its consumer health arm and focus the remaining business on drugs has come at a good time.

DOES Martin Hellawell know something that we don’t?

The chairman and former chief executive of IT software firm Softcat last week offloaded £21.3 million of shares in the company.

That is a large sum even for a business with a market value of £1.4 billion.

The shares were struggling in the last few months of 2018, but rallied in January after Softcat said trading was ‘materially ahead’ of expectations.

Hellawell retains a 3.4 per cent stake in Softcat and clearly has less to do with the running of the business these days. It’s not exactly what you’d call a show of faith, though.