HomeTechnologyAlphabet Stocks Slip Despite Beating Earnings Estimates

Alphabet Stocks Slip Despite Beating Earnings Estimates

Google parent company Alphabet Inc. reported strong second-quarter earnings on Wednesday, beating analysts’ estimates at large. The company’s $84.7 billion revenue topped forecasts of $84.3 billion, while earnings per share for Q2 was $1.85, exceeding Wall Street estimates of $1.85 per share.

Data from Bloomberg showed that revenue rose by 14% from the previous year’s figure of $74.6 billion, while earnings per share surged 31% year-over-year, with earnings of $1.44 per share in 2023.

Alphabet’s cloud business outperformed Wall Street expectations in the second quarter, with Google’s cloud revenue of $10.35 billion and operating income of $1.17 billion beating estimates of $10.1 billion and $982.2 million respectively. This was a significant year-over-year growth, with 2023’s Q2 figures coming in at $8 billion and $395 million respectively.

The company’s advertising revenue of $64.6 billion outperformed analysts’ expectations of $64.5 billion, while also exceeding last year’s figure of $58.1 billion. Still, YouTube’s ad revenue fell short of expectations, with $8.66 billion in revenue compared to expectations of $8.95 billion.

Following the release of its fiscal results, Alphabet’s shares declined by 3% in pre-market trading on Wednesday. Despite this decline, the company’s stocks are still up 30% for the year to date.

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