Tag Archives: Alphabets

Alphabet’s revenue sees a 12% rise

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Google may face a breakup after losing two antitrust laws, but for now, it can take solace in its substantial earnings.

Alphabet, Google’s parent company, reported first-quarter revenue of $900.23 billion, a 12% increase from the previous year. Net income also saw a significant jump to $34.544 billion. Earnings per share stood at $2.81.

While the revenue aligned with analyst expectations, the bottom line was particularly strong. Analysts had anticipated revenue of $8.915 billion and earnings per share of $2.02.

Google CEO Sundar Pichai attributed the impressive results to the overall growth and momentum of the business.

Following the positive financial report, Google announced a 5% dividend increase and authorized $70 billion in share buybacks. Stock prices, which had been moderately increasing before the earnings release, saw further gains in after-hours trading.

Despite initial setbacks earlier in the year, including a drop in stock prices due to economic disruptions caused by tariff policies, Google’s outlook is improving. Challenges such as changes in AI-driven search and ongoing antitrust battles pose risks, but the company remains resilient.

Recent legal rulings have raised concerns over Google’s market dominance, leading to discussions on potential breakup scenarios. While Google vows to fight antitrust charges, some experts argue that a breakup could be beneficial, citing historical precedents with IBM and Microsoft.

Historical cases like IBM’s antitrust battle and Microsoft’s legal challenges offer insights into the potential outcomes for Google. As Google’s growth slows down, analysts speculate on the company’s future trajectory amid evolving market dynamics.

Research firm Emarketer predicts a deceleration in Google’s ad revenue growth, highlighting shifts in the digital advertising landscape. Senior analysts underscore the importance of adaptability in the face of changing market conditions.

Source: www.nytimes.com

Alphabet’s Google Parent Company makes historic purchase of cybersecurity firm Wiz

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Alphabet, the owner of Google, has agreed to purchase Cybersecurity Group Wiz for $32 billion (£24.7 billion).

Google is acquiring an Israeli startup in an effort to compete with rivals Microsoft and Amazon in the cloud services market.

Wiz provides services that scan data from cloud storage providers like Amazon Web Services and Microsoft Azure for security risks. It previously turned down Alphabet’s $23 billion bid last summer.

However, concerns about regulatory approval caused some issues with the initial bid.

If the deal falls through, Alphabet has agreed to pay a $3.2 billion fee. This acquisition indicates a test of the Trump administration’s willingness and shows President Biden’s leadership in acquiring major technology companies.

Alphabet is currently facing pressure from US Department of Justice officials to sell off its Chrome browser to address concerns about its dominance in the search market.

Wiz, founded in 2020 by graduates of the Israeli Intelligence Corps, has offices in New York and Israel, with its European headquarters in London.

Despite the acquisition, Wiz will operate independently from Google, similar to how Microsoft operates LinkedIn.

Wiz will continue to collaborate with major cloud platforms such as Amazon Web Services, Microsoft Azure, and Oracle Cloud.




Wiz co-founder and CEO Assaf Rappaport will remain in his position until October 2024. Photo: Bloomberg/Getty

“We’re excited for the future,” said Sundar Pichai, Google’s CEO. “Google Cloud and Wiz will enhance cloud security and multi-cloud capabilities. Businesses and governments operating in the cloud seek stronger security solutions and a wider range of cloud computing providers.”

Startup CEO Assaf Rappaport previously rejected Alphabet’s $23 billion offer to focus on growth and potentially going public.

Analyst Dan Ives from Wedbush commented on the acquisition, highlighting Wiz’s strong presence in the cloud cybersecurity industry.

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Google’s move to acquire Wiz is seen as a strategic step to compete with other tech giants like Microsoft and Amazon in the cloud security space.

Wiz currently generates $750 million in annual revenue, and Google aims to capitalize on the company’s market position for future growth.

Alphabet’s previous acquisitions include Motorola Mobility, Mandiant, YouTube, and Deep Mind as part of its strategy to diversify from search-related ads.

With Wiz’s expertise, Alphabet hopes to gain a larger share of the global cloud market, currently lagging behind Microsoft Azure and Amazon Web Services.

Analyst Dan Ives sees Google’s acquisition of Wiz as a strategic move to enhance cloud security offerings and drive cloud and AI initiatives forward.

Source: www.theguardian.com

Alphabet’s high profits overshadowed by advertising recession, leading to decline in Google investor confidence

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Alphabet shares experienced a more than 5% drop in after-hours trading on Tuesday due to the tech giant’s shortfall in key advertising sectors, despite narrowly surpassing overall revenue estimates for the fourth quarter of 2023.

Google’s parent company disclosed that advertising revenue fell short of forecasts at $65.52 billion compared to $65.8 billion, but the overall revenue exceeded expectations at $86.31 billion versus $85.36 billion. This marked a 13% increase from the previous year.

The chief financial officer of Alphabet described the company’s results as “very strong,” emphasizing the surpassing of overall revenue expectations. “We remain committed to permanently restructuring our cost base while making investments to support growth opportunities,” she stated.

The response to the report was subdued after Google’s parent company laid off 1,000 employees in January. CEO Sundar Pichai announced at the end of the month that the company will refocus on “investing in key priorities,” particularly in the artificial intelligence elements integrated into Google’s flagship products, in 2024, and hinted at further job cuts.

Investors expressed encouragement Analysts believe that the recent job cuts may reflect prudent cost-cutting efforts amidst rising interest rates. However, the impact of the layoffs is evident, with Porat stating that severance pay in the first quarter of 2024 is expected to be $700 million. Alphabet recorded $2.1 billion in severance-related expenses and $1.8 billion in severance-related expenses in 2023, freeing up office space.


Despite the overall advertising downturn, Alphabet announced that YouTube ad revenue reached $9.2 billion, exceeding analysts’ predicted $9.16 billion and a significant increase from the same period in 2022.

CEO Sundar Pichai, in a statement accompanying the earnings call, expressed Alphabet’s pleasure with “the growing contribution from YouTube.” He also highlighted the company’s digital subscription services, including YouTube and cloud storage service Google One, achieving $15 billion annually.

“The significant growth in our subscription revenue over the past few years demonstrates the ability of our team to deliver high value-added services and provides a strong foundation on which to build,” he stated. Ta.

Like many other companies in the technology industry, Alphabet is aiming to take advantage of the AI ​​boom, with the mention of the word “AI” occurring more than 70 times in Tuesday’s earnings call. Pichai outlined the company’s plans to integrate its new AI model Gemini across various products, including search, advertising, and cloud.

Alphabet’s emphasis on AI comes as the company seeks to diversify its revenue streams. Its core search advertising business has stalled, and it faces growing antitrust litigation threats. The US Department of Justice filed a lawsuit against Google, alleging a monopoly on digital advertising technology. A judge’s ruling in January confirmed that the company will be forced to stand trial for charges brought by multiple states regarding advertising market dominance. The company also faced an antitrust case last year related to its dealings with other technology companies, including payments to Apple of about $18 billion annually to keep Safari’s default search engine.

“Google could have its toughest year yet as antitrust threats loom and the death knell sounds for third-party cookies,” stated Evelyn Mitchell Wolf, a senior analyst at Insider Intelligence. “We need to prepare ourselves for the possibility that something may happen.”

Source: www.theguardian.com