Alphabet's Q2 earnings exceed expectations, but stock falls 2.77% in pre-market trading

From Nasdaq: 2024-07-24 16:44:00

Alphabet (GOOGL) reported better-than-expected Q2 earnings, with earnings per share of $1.89 exceeding estimates by 2.16%. Revenues of $71.35 billion also beat expectations, showing a 14.97% increase from the same period last year. Even with the positive results, the stock fell 2.77% in pre-market trading on Jul 24.

The company’s Q2 performance was fueled by strong results in its Google advertising and Google Cloud segments. Google ad revenues reached $64.62 billion, while Google Cloud’s operating income nearly tripled. CEO Sundar Pichai noted momentum in Search and Cloud businesses, with revenues from Google Search & other segment up 13.79%.

The strong Q2 results from Alphabet could have a significant impact on ETFs heavily invested in the tech giant. ETFs like Communication Services Select Sector SPDR Fund (XLC) and Vanguard Communication Services ETF (VOX) have double-digit exposure to GOOGL, with gains of 32.94% and 31.34% over the past year, respectively.

Fidelity MSCI Communication Services Index ETF (FCOM) and iShares Global Comm Services ETF (IXP) also have exposure to GOOGL, with gains of 30.80% and 31.20% over the past year, respectively. Investors looking to capitalize on Alphabet’s positive performance in Q2 can consider these ETFs for potential growth opportunities.



Read more at Nasdaq: Google Heavy ETFs in Focus Following Upbeat Q2 Earnings