Alphabet experienced an increase of 10% in its stock this week due to the release of second quarter earnings and revenue that surpassed expectations. Investors were evidently pleased to observe that the Google parent company still demonstrated growth despite the presence of headwinds and the expected shift in CFO. The stock reached its highest closing price in over a year.
This week, Alphabet's stock price rose to $132.58, its highest level in more than a year, after the company reported second quarter earnings that showed growth despite a tough advertising market. Revenue for the Google parent company rose by 7% to $74.6 Billion from the year prior, with online advertising revenue increasing by 3.3%. The company also showed success in both its YouTube and Cloud divisions, despite intense competition, and its search revenue saw steady growth. Investors were relieved to see this growth, as there were concerns that users would turn to AI chatbots for their queries instead of traditional search. Despite Alphabet Chief Financial Officer, Ruth Porat, announcing she will be leaving her role after 8 years to assume another position, the stock still gained momentum due to the promising report. Analysts from Bernstein and Citi both expressed optimism for the broader online advertising environment, citing data that indicates Google's investments in newer products and services have paid off.
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