Driven by an increase in sales of digital advertising and strong demand for its cloud computing services, Alphabet exceeded second-quarter revenue and profit projections on Tuesday. However, the company warned that capital costs would stay high for the entire year.
Alphabet's findings show a strong demand for digital advertisements, fuelled by major events like the Olympics in Paris and elections in a number of nations, including the United States. Meanwhile, its software division is growing thanks to a rebound in enterprise expenditure.
Its cloud business was driven by the widespread usage of generative artificial intelligence technologies.
Alphabet's main source of revenue, advertising sales, increased 11% to $64.6 billion. With the use of client data, the corporation sells adverts in its search product more effectively.
The net income for the quarter that concluded on June 30 exceeded the average forecast of $22.9 billion by 28.6% to $23.6 billion.
Reaction from investors was uneven, with shares gaining by around 2% at first and then falling by a comparable amount. This year, they had increased by almost 30%, surpassing a 20% increase in the tech-dominated Nasdaq Composite Index.
Ido Caspi, a research analyst with Global X, said, "This was another stellar quarter from Google with beats across the board," noting ad sales and artificial intelligence products as catalysts.
LSEG data shows that total sales increased by 14% to $84.74 billion, beyond the $84.19 billion experts had projected. Its YouTube business saw a 13% increase in ad sales to $8.67 billion.
Cloud computing services revenue, a closely followed indicator of the state of corporate technology investment, increased by 28.8% to $10.35 billion. The analysts' estimate was $10.16 billion.
For the June quarter, Alphabet disclosed $13 billion in capital expenditures. During her final conference call as Alphabet's CFO, Ruth Porat assured investors that the company's capital expenditures for the remaining quarters of 2024 would total at least $12 billion.
Investors were alarmed by the company's 91% increase in capital expenditures to $12 billion between January and March.
Alphabet, like its rivals, is rushing to release AI products as capital continues to pour billions into the field.
However, a number of humiliating results from its AI searches have been returned, such the widely mocked advice that pizza should be covered in glue to improve the cheese's grip. In an effort to iron out bugs, Google scaled back on the technology in May.
During a Tuesday call with investors, Alphabet CEO Sundar Pichai said that the technology will be used in other nations. "You'll see us expand the use cases around it."
Without giving a timeframe, Pichai stated that AI solutions may soon generate income instead of only assist businesses in increasing productivity and decreasing costs.
Google has been pursuing its largest acquisition to date, a nearly $23 billion buyout of cybersecurity company Wiz, despite increased regulatory scrutiny.
However, Wiz informed staff members on Monday that it was abandoning the agreement and would instead seek going public.
Prior to pulling out of the acquisition earlier this month, Google had also conducted negotiations to buy the customer relationship management company HubSpot. The agreement would have made Alphabet a competitor in that market for Salesforce, Oracle, and other companies.
After years of promising to phase away the little packets of code used to trace online searches, Google announced on Monday that it intends to maintain third-party cookies in its Chrome browser retracing feature.
It was a significant turnaround following worries raised by advertisers that their capacity to gather and process data for customised adverts would be restricted by the removal of cookies, leaving them reliant on Google's user databases.
The Mountain View, California-based company's sales for its "other bets," which include its self-driving vehicle division Waymo and experimental initiatives, increased by 28% to $365 million. According to Porat, the business intends to invest $5 billion in Waymo over a number of years, while competitor Cruise is gradually rerouting its operations on American roadways following a well reported accident in October.
(Source:www.firstpost.com)
Alphabet's findings show a strong demand for digital advertisements, fuelled by major events like the Olympics in Paris and elections in a number of nations, including the United States. Meanwhile, its software division is growing thanks to a rebound in enterprise expenditure.
Its cloud business was driven by the widespread usage of generative artificial intelligence technologies.
Alphabet's main source of revenue, advertising sales, increased 11% to $64.6 billion. With the use of client data, the corporation sells adverts in its search product more effectively.
The net income for the quarter that concluded on June 30 exceeded the average forecast of $22.9 billion by 28.6% to $23.6 billion.
Reaction from investors was uneven, with shares gaining by around 2% at first and then falling by a comparable amount. This year, they had increased by almost 30%, surpassing a 20% increase in the tech-dominated Nasdaq Composite Index.
Ido Caspi, a research analyst with Global X, said, "This was another stellar quarter from Google with beats across the board," noting ad sales and artificial intelligence products as catalysts.
LSEG data shows that total sales increased by 14% to $84.74 billion, beyond the $84.19 billion experts had projected. Its YouTube business saw a 13% increase in ad sales to $8.67 billion.
Cloud computing services revenue, a closely followed indicator of the state of corporate technology investment, increased by 28.8% to $10.35 billion. The analysts' estimate was $10.16 billion.
For the June quarter, Alphabet disclosed $13 billion in capital expenditures. During her final conference call as Alphabet's CFO, Ruth Porat assured investors that the company's capital expenditures for the remaining quarters of 2024 would total at least $12 billion.
Investors were alarmed by the company's 91% increase in capital expenditures to $12 billion between January and March.
Alphabet, like its rivals, is rushing to release AI products as capital continues to pour billions into the field.
However, a number of humiliating results from its AI searches have been returned, such the widely mocked advice that pizza should be covered in glue to improve the cheese's grip. In an effort to iron out bugs, Google scaled back on the technology in May.
During a Tuesday call with investors, Alphabet CEO Sundar Pichai said that the technology will be used in other nations. "You'll see us expand the use cases around it."
Without giving a timeframe, Pichai stated that AI solutions may soon generate income instead of only assist businesses in increasing productivity and decreasing costs.
Google has been pursuing its largest acquisition to date, a nearly $23 billion buyout of cybersecurity company Wiz, despite increased regulatory scrutiny.
However, Wiz informed staff members on Monday that it was abandoning the agreement and would instead seek going public.
Prior to pulling out of the acquisition earlier this month, Google had also conducted negotiations to buy the customer relationship management company HubSpot. The agreement would have made Alphabet a competitor in that market for Salesforce, Oracle, and other companies.
After years of promising to phase away the little packets of code used to trace online searches, Google announced on Monday that it intends to maintain third-party cookies in its Chrome browser retracing feature.
It was a significant turnaround following worries raised by advertisers that their capacity to gather and process data for customised adverts would be restricted by the removal of cookies, leaving them reliant on Google's user databases.
The Mountain View, California-based company's sales for its "other bets," which include its self-driving vehicle division Waymo and experimental initiatives, increased by 28% to $365 million. According to Porat, the business intends to invest $5 billion in Waymo over a number of years, while competitor Cruise is gradually rerouting its operations on American roadways following a well reported accident in October.
(Source:www.firstpost.com)