Alphabet's revenue growth slows, but AI and Cloud services offer bright spot

From Nasdaq: 2024-10-28 17:08:04

Alphabet is expected to report its slowest revenue growth in four quarters, with a projected increase of 12.6% for the third quarter. Despite competition from Amazon and TikTok, Alphabet’s cloud growth driven by AI remains a bright spot. New CFO Anat Ashkenazi faces challenges in maintaining operational efficiencies amid rising competition.

Investors will closely watch Alphabet’s Q3 report for any operational shifts under new CFO Ashkenazi. Google Cloud is projected to show strong growth of 29.2%, while core ad revenue from Google Search is expected to slow. Capital expenditures will remain high as Alphabet invests in AI capabilities to stay competitive.

Alphabet’s ability to navigate rising competition and high capital expenditures is crucial for investor confidence. With slowing growth in core ad businesses, Alphabet must balance emerging AI initiatives with cost containment efforts. Investors are looking for Ashkenazi to drive operational efficiencies while maintaining a strong position in the tech landscape.



Read more at Nasdaq: AI and Cloud Offer Alphabet a Lifeline Amid Slowing Core Businesses