Alphabet, the parent company of Google, will declare its second-quarter earnings upon the conclusion of ordinary trading. Over the course of the quarter, the giant corporation in tech advanced a variety of AI implementations. Moreover, Alphabet has kept up its endeavors to reduce expenditure.
Alphabet is set to report second-quarter earnings after regular trading concludes on Tuesday. Analysts expect earnings of $1.34 per share (adjusted) and revenue of $72.82 billion, according to Refinitiv. StreetAccount further predicts Google Cloud revenue of $7.87 billion; YouTube ad revenue of $7.43 billion; and traffic acquisition costs of $12.37 billion. For the fourth consecutive quarter, Google's parent company is predicted to show single-digit revenue growth as it grapples with a pullback in digital ad spending brought on by economic worries. Cost savings enacted at the start of the year, which included Google staff layoffs, are anticipated to persist though at a decreased rate. AI featured prominently in the quarter, with Google introducing Search Generative Experience (SGE), a generative AI-driven search service which has yet to make a public debut. Additionally, the company merged Google Brain and DeepMind, and partnered with Character AI, a startup established by former Google workers focusing on AI chatbot production. An update to its ChatGPT competitor Bard, including audio responses, was released. With respect to the cloud, revenue is expected to grow 25%, which mirrors the forecasted increase for Microsoft Azure when its financials come out on the same day. The call with analysts to review the quarterly results starts at 5 p.m. ET. This comes as Google pushes for a more regular return to offices, while CEO Sundar Pichai's pay grew to a reported $226 million last year, primarily from stock awards. Alphabet stocks have gained 38% this year, surpassing the S&P 500's 19% increase.
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