Alphabet, the parent company of Google and YouTube, announced its earnings on Tuesday, surpassing analyst expectations for the third consecutive quarter. The company has shown strong growth in digital advertising and Google Cloud demand, leading to a rise in stock prices during after-hours trading.
CEO Sundar Pichai expressed excitement over the company’s momentum and the success of their AI tools. Analysts had predicted revenue to reach $86.23 billion with earnings per share at $1.85. However, Alphabet reported revenue of $88.27 billion and earnings per share of $2.12, marking a 15% overall growth. Advertising revenue increased by 10% and cloud services revenue by 35%, exceeding expectations.
Despite the company’s success, Google faces legal challenges in 2024, especially after losing an antitrust case against the U.S. government. Pichai addressed concerns about potential consequences from the Department of Justice’s proposals, emphasizing the need for continued innovation in the tech industry.
Google’s capital expenditures rose by 62% to $13 billion, with expectations to maintain this level in the next quarter and further increase in 2025. Additionally, the company has faced antitrust violations related to its Play Store and dominance in online advertising.
Pichai mentioned Waymo, Google’s self-driving car division, deploying cars in multiple U.S. cities and offering 150,000 paid rides per day. With a recent funding of $5.6 billion, Waymo aims to expand its operations and revenue potential in the future.
Source: www.theguardian.com
