The search and cloud giant was tough to own for a while, but Tuesday's results show it is finally on proper footing.
Alphabet on Thursday delivered largely better-than expected earnings results that showed the search and cloud giant is finally on better footing in the fast-growing AI space. Total revenue in the three months ended June 30 rose 13.6% year over year to $84.74 billion, outpacing the $84.19 billion expected, according to estimates compiled by data provider LSEG. Earnings per share jumped 31% on an annual basis to $1.89, exceeding the $1.84 expected, LSEG data showed.
Strong numbers in the company's search and cloud businesses more than offset the slight misses in the YouTube and network units. Cloud recorded a couple of big firsts: exceeding $10 billion in revenue, along with $1 billion in operating income. When asked about the aggressive investments, management offered up some thoughts on the upfront costs. In addition to simply working to define the category of generative AI, the team noted that they are looking to conduct investment in such a way that it both helps customers while also being able to further enhance company's own offerings.
Pichai, on the post-earnings conference call with investors, said AI is helping the company deliver better responses on more types of search queries and introducing new ways to search. "People who are looking for help with complex topics are engaging more and keep coming back for AI overviews," Pichai said, noting high engagement from younger users aged 18 to 24 when they use search with AI overviews. Pichai said users will soon be able to ask questions by taking a video with Lens.
Eli Lilly And Co Alphabet Inc Microsoft Corp Amazon.Com Inc Meta Platforms Inc Breaking News: Markets Markets Investment Strategy Jim Cramer Club Earnings Business News
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Here are Tuesday's biggest analyst calls: Nvidia, Tesla, Apple, Meta, Alphabet, Amazon, RH, Netflix & moreHere are Tuesday's biggest calls on Wall Street.
Read more »
Jim Cramer's top 10 things to watch in the stock market TuesdayOn tap Tuesday: Key earnings reports from Alphabet, Tesla and other big companies.
Read more »
Stocks making the biggest moves after hours: Alphabet, Tesla, Visa and moreThese are the stocks posting the largest moves in extended trading.
Read more »
Stocks making the biggest moves after hours: Alphabet, Tesla, Visa and moreThese are the stocks posting the largest moves in extended trading.
Read more »
Rosenblatt cuts Alphabet stock to Neutral on 'multiple areas of transitional risk'Rosenblatt cuts Alphabet stock to Neutral on 'multiple areas of transitional risk'
Read more »
Alphabet soup: NASA's GOLD mission finds surprising C, X shapes in atmosphereWho knew Earth's upper atmosphere was like alphabet soup? NASA's Global-scale Observations of the Limb and Disk (GOLD) mission has revealed unexpected C- and X-shaped formations in an electrified layer of gas high above our heads called the ionosphere.
Read more »