Big tech earnings are flowing. While the post-report results have been mixed among the various bellwether tech stocks, opportunities are abound for aggressive traders looking to capitalize on short-term swings. That could be the case when Google’s parent company Alphabet (NASDAQ: GOOGL) steps into the earnings confessional on Wednesday, Feb. 4.
Alphabet recently joined the $4 trillion market capitalization club. Alone, that could be reason for traders to evaluate single-stock ETFs such as the Direxion Daily GOOGL Bull 2X Shares (GGLL) and the Direxion Daily GOOGL Bear 1X Shares (GGLS).
GGLL is designed to deliver 200% of the daily returns of Alphabet shares. Meanwhile the bearish GGLS delivers the inverse performance of that widely followed stock. So if Alphabet falls by 1% on a given day, GGLS should rise by the same amount.
What Could Spark GGLL Next Week
An array of factors could make GGLL or GGLS useful next week. This includes Alphabet’s cloud computing business and its artificial intelligence (AI) spending plans. If recent reports from competitors are accurate guides, Alphabet is likely to say it’s boosting AI spending, but that remains to be seen.
“Growth in Google Cloud is the most important metric. Strong outperformance here could boost overall results and further demonstrate GenAI monetization,” said Morningstar analyst Malik Khan. “We are expecting a capex increase for 2026, and the scale of this increase will likely be interesting.”
Either of the Direxion ETFs could be in style following Alphabet’s earnings reports. This depends on commentary around advertising spending and the search competition with OpenAI.
“With the fourth quarter being strong for advertising, we are expecting search sales to remain solid. At the same time, we’ll be on the lookout for commentary on potential competition with OpenAI, ads in AI mode, and general monetization of GenAI search,” added Khan.
Alphabet has a long-running track record of beating earnings estimates. Its reputation as a big cash flow generator may add to the case for GGLL, but there’s also little margin for error. Traders shouldn’t ignore the bearish GGLS.
“With its 3-star rating, we believe Alphabet’s stock is fairly valued compared with our long-term fair value estimate of $340 per share, which implies a 2025 adjusted price/earnings multiple of 32 times and an enterprise value/adjusted EBITDA multiple of 25 times,” adds Khan. “We forecast Alphabet’s top line growing at a 13% compound annual growth rate over the next five years.”
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