Google parent Alphabet reported Q3 earnings, which beat on top and bottom lines.
The company’s shares rose 4% on the results. Alphabet’s revenue grew 15% year over year, which is stronger than the same quarter last year. The company reported blow-out cloud revenue at $11.35 billion — up nearly 35% from the $8.41 billion a year ago. The company attributed its strong cloud results to their AI offerings, which includes subscriptions for enterprise customers. $GOOG Alphabet Q3 FY24: • Revenue +15% Y/Y to $88.3B ($2.0B beat). • Operating margin 32% (+4pp Y/Y). • EPS $2.12 ($0.27 beat). Google Cloud: • Revenue +35% Y/Y to $11.4B. • Operating margin 17% (+14pp Y/Y). YouTube ads +12% to $8.9B. Source: App Economy Insights
Google $GOOGL will back the construction of 7 small nuclear power reactors in the US, a first-of-its kind deal
Under the deal’s terms, Google committed to buying power generated by seven reactors to be built by nuclear-energy startup Kairos Power. The agreement targets adding 500 megawatts of nuclear power starting at the end of the decade (Source WSJ)
$GOOGL's share of the U.S. search ad market is expected to drop below 50% next year for the first time in over a decade, according to eMarketer.
TikTok is already targeting ads based on search queries, and AI startup Perplexity, backed by Jeff Bezos, is planning to roll out ads soon. Meanwhile, Amazon, with a 22.3% share, continues to grow fast. The competition is heating up... Source: WSJ thru Wall Street Engine
Alphabet slipped 1% after-hours in spite of a beat on both top and bottom lines in the second quarter.
Alphabet earned $1.89 per share on $84.74 billion in revenue. Consensus estimates had called for earnings of $1.84 per share on $84.19 billion in revenue. However, revenue at its Youtube advertising segment missed forecasts. $GOOG Alphabet Q2 FY24 by App Economy Insights: • Revenue +14% Y/Y to $84.7B ($0.5B beat). • Operating margin 32% (+3pp Y/Y). • EPS $1.89 ($0.04 beat). ☁️ Google Cloud: • Revenue +29% Y/Y to $10.3B. • Operating margin 11% (+6pp Y/Y). ▶️ YouTube ads +13% to $8.7B.
Emerson Electric CEO:
"AI data center racks consume significantly more power than traditional data centers with a search on ChatGPT consuming 6 to 10 times the power of a traditional search on Google" $EMR $GOOG $GOOGL $MSFT Source: The Transcript
Apple has poached dozens of artificial intelligence experts from Google and has created a secretive swiss laboratory in Zurich
As the tech giant builds a team to battle rivals in developing new AI models and products. According to a Financial Times analysis of hundreds of LinkedIn profiles as well as public job postings and research papers, the $2.7tn company has undertaken a hiring spree over recent years to expand its global AI and machine learning team. The iPhone maker has particularly targeted workers from Google, attracting at least 36 specialists from its rival since it poached John Giannandrea to be its top AI executive in 2018. While the majority of Apple’s AI team work from offices in California and Seattle, the tech group has also expanded a significant outpost in Zurich. Professor Luc Van Gool from Swiss university ETH Zurich said Apple’s acquisitions of two local AI start-ups — virtual reality group FaceShift and image recognition company Fashwell — led Apple to build a research laboratory, known as its “Vision Lab”, in the city. Source: FT
Here's how Google $GOOGL makes its money
Source: Chartr
BREAKING: Google parent company Alphabet GOOGL soars over 12% in extended trading
after the company reported results that topped analysts’ estimates, showed soaring profits in its cloud division and announced its first dividend. The company reported revenue of $93.5 billion and EPS of $$1.89. Google also declared a $0.20 dividend for the first time in history and issued a $70 billion stock buyback. In a nutshell: $GOOG Alphabet Q1 FY24: • Revenue +15% Y/Y to $80.5B ($1.8B beat). • Operating margin 32% (+7pp Y/Y). • EPS $1.89 ($0.38 beat). ☁️ Google Cloud: • Revenue +28% Y/Y to $9.6B. • Operating margin 9% (+7pp Y/Y). ▶️ YouTube ads +21% to $8.1B. Source: The Kobeissi Letter, App Economy Insights
