Alphabet Inc. (GOOGL) is poised to release its second-quarter earnings report after the market close on Tuesday. Investors are anticipated to closely examine the company’s cloud revenue growth and any new developments in artificial intelligence (AI) initiatives.
Analysts predict that Alphabet will disclose revenues of $84.3 billion for the quarter, a 13% increase compared to the same period last year. Net income is expected to reach $23 billion, translating to earnings of $1.85 per share, marking an improvement over the previous year’s figures.
Q2 2024 Financial Projections:
Revenue: $84.3 billion (up from $74.6 billion in Q2 2023 and $80.54 billion in Q1 2024)
Diluted Earnings Per Share: $1.85 (compared to $1.44 in Q2 2023 and $1.89 in Q1 2024)
Net Income: $23 billion (increased from $18.37 billion in Q2 2023 and $23.66 billion in Q1 2024)
Key Focus: Cloud Revenue Growth
Investors are likely to scrutinize the performance of Google Cloud, with expectations of revenue hitting $10.22 billion. This would represent growth from both the preceding quarter and the same quarter last year, and could address concerns about the tech sector’s substantial investments in AI.
Spotlight on AI Initiatives
Alphabet might provide updates on its AI projects, such as Gemini Live and Project Astra, which are crucial for competing with Microsoft’s (MSFT) OpenAI. Insights into how AI is influencing Google Search could also be shared.
Additionally, Alphabet’s potential acquisition strategies may be discussed. The company is reportedly negotiating to acquire cybersecurity firm Wiz for approximately $23 billion, which would be its largest acquisition to date. Although Alphabet was recently rumored to be interested in acquiring HubSpot (HUBS), it appears the company has shifted focus.
As of Monday noon ET, Alphabet’s stock has risen nearly 30% this year, trading at $181.04.
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