Alphabet (GOOGL) revenue surged in Q2 driven by AI investments, advertising, and cloud computing.

From Nasdaq: 2024-08-26 18:05:39

Alphabet (GOOGL), Google’s parent company, is a tech powerhouse worth $2.04 trillion with a diverse portfolio including AI, search engines, advertising, and cloud computing. In Q2, Google Search dominated and revenue surged, fueled by AI investments. Revenue grew 13.5% to $84.7 billion, with Google Cloud contributing $10.3 billion. YouTube ads saw a 13% increase, while the company had $110.9 billion in cash.

Alphabet’s revenue and earnings have grown steadily, with Google Search generating $48.5 billion in Q2, up 13.8% YoY. Google Cloud’s revenue grew by 28.7% to $10.3 billion. Management highlighted Cloud’s $10 billion in revenue milestone and $1 billion in operating profit. The company intends to continue investing in Generative AI solutions.

Analysts expect Alphabet’s revenue to increase by 12.9% for the full year, with earnings potentially growing by 31.4%. AI and advertising revenue are driving growth, with Google dominating the digital advertising market. Wall Street maintains a positive outlook on GOOGL stock, with a “strong buy” rating and target upside potential of 23.2% from current levels.



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