Amazon and Google search volume is up 43% and 37% this week — is earnings-season attention a signal or just noise?
Amazon and Google are both seeing big jumps in daily search volume this week heading into earnings season — AMZN up 43%, GOOG up 37%. Retail attention spikes usually just follow headlines. Has anyone found search or attention volume useful as a signal, or is it pure noise? What do you actually check before deciding either way — AWS and Google Cloud growth rates, forward P/E, guidance?
1 answer
- Attention is noise — check cloud growth, not search volume
Search spikes follow headlines and earnings dates. They do not predict the numbers. The thing that actually moves both stocks is cloud growth in the release itself — AWS growth for Amazon, Google Cloud growth for Google. Pull the last four quarters of cloud growth from the earnings releases and compare the trend before you decide anything. A search-volume chart will not tell you any of that.