Business

Alphabet Exceeds Q2 Expectations, Driven By Digital Ads, Cloud Computing

Alphabet, the parent company of Google, has reported impressive second-quarter results, surpassing revenue and profit estimates.

The company’s success was fueled by a significant increase in digital advertising sales and robust demand for its cloud computing services.

“We’re thrilled with our performance this quarter,” said Ruth Porat, Alphabet’s outgoing CFO. “Our results demonstrate the strength of our business, driven by innovation and demand for our products and services.”

Advertising sales, Alphabet’s primary revenue source, rose 11% to $64.6 billion, while net income jumped 28.6% to $23.6 billion, exceeding estimates.

The company’s cloud computing services also saw significant growth, with revenue increasing 28.8% to $10.35 billion.

However, Alphabet warned that capital expenses would remain high for the year, with quarterly expenditures expected to be at or above $12 billion.

A research analyst with Global X, Ido Caspi, praised the company’s performance, saying, “This was another stellar quarter from Google with beats across the board, driven by ad sales and artificial intelligence offerings.”

Alphabet’s shares initially rose 2% before dipping by a similar percentage, having gained over 30% this year, outperforming the Nasdaq Composite Index.

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