TLDR
Alphabet,
the
parent
company
of
Google,
reported
strong
financial
results
for
the
second
quarter
of
2024.
The
tech
giant
saw
significant
growth
in
both
profit
and
revenue,
largely
driven
by
its
investments
in
artificial
intelligence
(AI)
technology.•
Operating
margin
32%
(+3pp
Y/Y).
•
EPS
$1.89
($0.04
beat).•
Revenue
+29%
Y/Y
to
$10.3B.
•
Operating
margin
11%
(+6pp
Y/Y).
▶️
YouTube
ads
+13%
to
$8.7B.
pic.twitter.com/00xSEVe2uG
—
App
Economy
Insights
(@EconomyApp)
July
23,
2024
Despite
these
increased
expenses,
Alphabet’s
core
businesses
continued
to
perform
well.
The
majority
of
the
company’s
revenue
still
came
from
Google
and
YouTube
advertisements,
demonstrating
the
enduring
strength
of
its
established
platforms.
In
terms
of
stock
performance,
Alphabet
shares
have
risen
31.5%
so
far
in
2024,
outpacing
tech
rivals
like
Microsoft,
Apple,
and
Amazon.
However,
all
these
companies
trail
behind
Nvidia,
the
GPU
chipmaker
that
has
seen
its
stock
price
surge
by
over
150%
this
year
due
to
the
AI
boom.
Pichai
expressed
optimism
about
Alphabet’s
position
in
the
evolving
tech
landscape.
“Our
longstanding
infrastructure
leadership
and
in-house
research
teams
position
us
well
as
technology
evolves
and
as
we
pursue
the
many
opportunities
ahead,”
he
said.
The
financial
results
underscore
Alphabet’s
commitment
to
AI
as
a
key
growth
driver.
While
the
increased
spending
on
AI
research
has
impacted
short-term
profits,
the
company
appears
to
be
betting
on
these
investments
to
fuel
long-term
growth
and
maintain
its
competitive
edge
in
the
rapidly
evolving
tech
sector.
Go to Source
Author: Oliver Dale
