#AlphabetEarnings #AIInnovation #StrategicAcquisitions
Alphabet Set to Report Q2 Earnings: What to Expect
As Alphabet prepares to release its second-quarter earnings after the market closes, analysts are keenly observing whether the company can maintain its consistent growth. The parent company of Google and YouTube is expected to report earnings of $1.84 per share and revenues nearing $84.2 billion, reflecting a 28% rise in earnings per share and a 13% increase in revenue compared to the same quarter last year.
Key Expectations
- Earnings per share: $1.84, as per LSEG
- Revenue: $84.18 billion, according to LSEG
- YouTube revenue: $8 billion, to StreetAccount
- Google revenue: $10 billion, to StreetAccount
- Traffic costs (AC): $13 billion, according to StreetAccount
AI and Cloud Services
The quarter featured numerous AI announcements, including the unveiling of a large language model named Gemini 1.5 Flash, capable of summarizing discussions, generating captions, and extracting data from extensive documents. Additionally, Alphabet introduced AI Overview, which provides users with a summary of answers at the top of Google search results. Despite these innovations, some new products faced criticism, raising concerns about the company's ability to safely deploy AI products at the pace of its competitors.
Leadership Changes and Cost-Cutting Measures
Alphabet also introduced a new Chief Financial Officer, Anat Ashkenazi, who will begin her role on July 31. The company continued to implement cost-cutting measures, including layoffs affecting over 100 employees across various teams in Google’s cloud division and at least 200 workers from its 'Core' engineering teams. These moves were met with employee dissatisfaction over a "significant decline in morale," citing issues such as diminished trust, tighter deadlines with fewer resources, and reduced prospects for internal advancement.
Acquisition Plans
Alphabet is reportedly exploring a potentially transformative acquisition, which would be its largest to date. Google is in advanced negotiations to acquire the cybersecurity company Wiz for $23 billion, aiming to enhance Google Cloud’s revenue.
Original Article: https://www.cnbc.com/2024/07/23/alphabet-set-to-report-q2-earnings-results-after-the-bell.html
Leave a Reply