Google tops expectations with $96.4bn in revenue after AI fuels second quarter | Google

Google has exceeded the Wall Street expectations for the quarter that ended in June after offering a few moments of AI.

On Wednesday, the company reported $ 2.31 (EPS) per share with an income of 96.4 billion dollars, and exceeded the $ 94 billion EPS projection of analysts’ $ 94 billion in sales.

Google’s General Manager Sundar Pichai pointed out “solid growth” in key areas throughout the company, including AI, Search, YouTube and Google Cloud.

“We lead the border of artificial intelligence and carry out an incredible speed, Pic said Pichai, Pichai said. “AI affects every part of the work positively, gains a strong acceleration. The search for a search for double -digit income increased and AI Overview and AI mode show good performance. We continue to see strong performance and subscription offers on Youtube.

Google’s Artificial Intelligence Chatbotu Gemini is currently more than 450 million active users and AI overviews, AI summaries, automatically emerged at the top of Google search results, has more than 2 billion active users per month in 200 countries and 40 languages.

To keep up with the expansion and demand for cloud products and services, Google said it plans to increase its investment in capital expenditures from $ 75 billion to $ 85 billion. Senior analyst Jesse Cohen seemed to be complicated with the market reaction to increasing expenditures. Investing.com.

Cohen underlines the commitment of Alphabet’s commitment to provide competitive advantage in developing technologies, and also brings concerns about the potential impacts on recent profitability, C said Cohen. “AI investments fueled the company’s strong Capex commitments, but the market question the speed of making money.”

Some analysts say this is equal to the course for companies that want to compete effectively in the field of AI and cloud computing.

“The only factor that limits Google’s growth is the restrictions on the calculation that AI and cloud solutions should continue,” he said. Zacks Investment Management.

Analysts will listen to the investor’s call for more information about the company’s AI investments and recent announcements. Last week, openai announced It will add Google Cloud to the cloud storage package package for Chatgpt.

“Cloud business continues to benefit from strong institutional demand and Openai’s decision to run a chatgpt on Google Cloud recently – after trusting Microsoft – both symbolic and strategic,” Scott AcheychekRex Financial Coo, said in a statement. “He speaks to scales. He speaks for speed. And he emphasizes that the alphabet is quietly transformed into a competitive asset of AI Stack and gained business from names such as Apple and Anthropics.”

While analysts are still waiting for the company to report positive results for the second quarter of the year, some are concerned about the last antitröst loss series. In April, a judge found that the firm was illegal to build the monopoly of some advertising technologies. This is watching an August that determines that Google is acting against competitiveness to protect the search monopoly.

The company said it has seen a 12% increase in income throughout Google Services, which includes the core search engine. Nevertheless, analysts will probably seek additional answers to the latest analyzes and explanations that show that Google searches have fallen for the first time in 22 years. During Google’s last antitröst attempt, Apple Services Vice President of Senior Eddy Cue, he said Google searches in Safari had fallen for the first time in 22 years. For searches, Chatgpt attributed to the rise in AI Chatbots, such as astonishment, twins and Microsoft Copilot.

“Search continues to be a point of tension, A said ACheychek said. “Although Openai’s Chatgpt is a controversial threat to Google’s search business, it is also a customer. This duality is not a winning race everywhere, but a struggle to meet the explosion to productive vehicles wherever, wherever it is.”