Alphabet's Q2 Earnings Surpass Expectations, Despite YouTube Ad Revenue Miss: Search and Cloud Drive Growth

Mountain View, California United States of America
Alphabet Inc. reported Q2 earnings beating analyst expectations for revenue and EPS
Alphabet's Other Bets unit brought in $365 million compared to $285 million a year ago with new $5 billion multiyear investment in Waymo
Google Cloud business exceeded expectations with revenues over $10 billion and operating income of $1.17 billion
Google's advertising revenue reported at $64.62 billion, slightly above estimate of $64.53 billion
Google Services revenue totaled $73.93 billion, slightly above estimate of $73.58 billion
Google's search engine and cloud services drove the strong quarterly performance
Robust performance in Search and Cloud attributed to ongoing innovation in AI and infrastructure leadership by Alphabet CEO Sundar Pichai
YouTube ad revenue fell short of estimates at $8.66 billion compared to estimated $8.95 billion
Alphabet's Q2 Earnings Surpass Expectations, Despite YouTube Ad Revenue Miss: Search and Cloud Drive Growth

Alphabet Inc., the parent company of Google, reported second-quarter financial results on July 23, 2024. The earnings beat analyst expectations for both revenue and earnings per share (EPS). However, YouTube ad revenue fell short of estimates.

Google's search engine and cloud services drove the strong quarterly performance. Alphabet reported adjusted EPS of $1.89 against the consensus estimate of $1.83, while revenue came in at $84.74 billion compared to the average analyst projection of $84.16 billion.

Google's Cloud business exceeded expectations with revenues surpassing $10 billion for the first time and operating income reaching $1.17 billion, surpassing estimates of $982.2 million.

The robust performance in Search and Cloud was attributed to ongoing innovation in AI and infrastructure leadership by Alphabet CEO Sundar Pichai.

Google's advertising revenue reported at $64.62 billion against an estimate of $64.53 billion, while Google Services revenue totaled $73.93 billion, slightly above the estimate of $73.58 billion.

Despite a slight shortfall in YouTube's performance with ad revenue reported at $8.66 billion compared to the estimated $8.95 billion, other areas of Alphabet saw growth as well.

Google will likely see another big boost in business following its earlier-than-usual hardware event coming in August, where it is expected to launch new Pixel devices.

Alphabet's Other Bets unit, which includes its self-driving car company Waymo, brought in $365 million compared to $285 million a year ago. The company announced a new $5 billion multiyear investment in Waymo during the second quarter.

The strong performance this quarter highlights ongoing strength in Search and momentum in Cloud. Alphabet is innovating at every layer of the AI stack, positioning itself well as technology evolves and pursuing opportunities ahead.


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Confidence

95%

Doubts
  • Are there any potential regulatory issues that could impact Alphabet's earnings?
  • Is the slight shortfall in YouTube ad revenue a cause for concern?

Sources

99%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Alphabet stock adds 2% as Google Search and Cloud fuel earnings beat

Investing.com Financial Markets Platform Senad Karaahmetovic Tuesday, 23 July 2024 23:29
  • Unique Points
    • Alphabet Inc. reported second-quarter financial results with adjusted EPS of $1.89, higher than the consensus estimate of $1.83.
    • Revenue for the quarter was $84.74 billion, above the average analyst projection of $84.16 billion.
    • Google's Search and Cloud services drove the earnings beat with robust performance.
    • The Cloud business exceeded $10 billion in quarterly revenues for the first time, contributing significantly to overall revenue increase of 14% compared to same quarter last year.
    • Operating income for Google Cloud reached $1.17 billion, surpassing estimates of $982.2 million.
    • Google's advertising revenue reported at $64.62 billion against an estimate of $64.53 billion.
    • Google Services revenue totaled $73.93 billion, slightly above the estimate of $73.58 billion.
  • Accuracy
    • Google’s Cloud business exceeded $10 billion in quarterly revenues for the first time, contributing significantly to overall revenue increase of 14% compared to same quarter last year.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

96%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Alphabet meets earnings expectations but misses on YouTube ad revenue

CNBC News Jennifer Elias Tuesday, 23 July 2024 16:00
  • Unique Points
    • Waymo opened its service to all San Francisco users for citywide rollout
    • Waymo is now making 50,000 weekly paid public rides primarily in San Francisco and Phoenix
  • Accuracy
    • YouTube advertising revenue was $8.66 billion, missing expectations by $270 million
    • Google Cloud revenue was $10.35 billion as per StreetAccount
    • Net income increased to $23.6 billion or $1.89 per share compared to $18.4 billion or $1.44 per share in the year-ago quarter
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (95%)
    The article contains some instances of inflammatory rhetoric and an appeal to authority, but no formal or informal fallacies were found. The author states that 'YouTube faces increased competition from social video sites like TikTok' without providing any evidence or reasoning for this claim, which could be considered inflammatory. Additionally, the author quotes Ruth Porat stating that Alphabet is committing a new $5 billion investment in Waymo, implying the authority and credibility of Porat's statement.
    • ]The article states that 'YouTube faces increased competition from social video sites like TikTok''
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

97%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Google had a massive quarter thanks to Search and AI

The Verge Emma Roth Tuesday, 23 July 2024 20:39
  • Unique Points
    • Google CEO Sundar Pichai mentioned that generative AI solutions have already generated billions in revenues and are used by over 2 million developers
    • Google is innovating at every layer of the AI stack
    • Google reportedly considered acquiring Wiz for $23 billion to bolster cloud security portfolio but deal was declined for IPO
    • AI Overviews in Search led to increases in Search usage and user satisfaction with results despite providing bizarre answers for certain queries
    • Google announced it will ask users to make an informed choice regarding third-party cookies instead of phasing them out by default
  • Accuracy
    • ]Google made $85 billion in revenue during the past few months[
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

96%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Alphabet earnings top estimates, YouTube ad revenue falls short

Yahoo Finance Julie Hyman Tuesday, 23 July 2024 23:31
  • Unique Points
    • Google Cloud and Google Ad revenue performed better than anticipated.
    • YouTube ads revenue fell short of expectations.
  • Accuracy
    • Revenue came in at $84.74 billion, surpassing expectations of $84.37 billion.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication