Alphabet, the parent company of Google, will report third-quarter earnings after the market closes on Tuesday. Over the course of the quarter, the business has implemented reductions to various divisions and reshuffled leadership responsibilities. Analysts at LSEG (formally referred to as Refinitiv) anticipate earnings of $1.45 per share and total revenue of $75.97 billion., analyst saysAlphabet is expected to report its third-quarter earnings after the bell Tuesday. According to a survey of analysts by LSEG (formerly known as Refinitiv), Wall Street is expecting earnings per share of $1.45 on revenue of $75.97 billion. Additionally, analysts are forecasting advertising revenue from YouTube to be $7.81 billion and Google Cloud revenue to be $8.64 billion, as well as traffic acquisition costs of $12.63 billion.The core advertising business of Google's parent company had weakened due to economic softening last year and increased competition from TikTok, leading to four straight quarters of single-digit revenue growth. In January, the company cut 12,000 jobs (~6% of its full-time workforce) and last month eliminated hundreds of positions from its recruiting organization. It also made focused layoffs within various business organizations during the third quarter, including an estimated 40-45 people in its news division. Google's self-driving car unit Waymo also laid off workers after announcing the expansion of its driverless ride-sharing service.Despite the downsizing, Google is investing heavily in artificial intelligence. Late last year, it introduced OpenAI's ChatGPT chatbot, and is now testing generative AI technology within core search, in order to provide more creative and thorough answers to text queries. Additionally, the company reshuffled its smart assistant with layoffs to "supercharge" products with AI. Its co-founder Sergey Brin gave a rare appearance at an all-hands meeting to discuss this work, while reports say product managers and designers for its ChatGPT competitor Bard were skeptical about the tool's helpfulness.Google is also facing an antitrust trial from the Department of Justice, alleging the company maintained a feedback loop with restrictive default contracts to preserve its search dominance. Financing chief Ruth Porat will be stepping down after eight years and taking on a new role as president and chief investment officer, and engaging with policymakers.
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