Technology
Tuesday, October 24th, 2023 1:53 pm EDT
Key Points
- Earnings Expectations: Alphabet, Google’s parent company, is set to report its third-quarter earnings. Wall Street analysts are anticipating earnings per share of $1.45 and revenue of $75.97 billion.
- Key Financial Metrics: Analysts are closely monitoring several crucial financial figures, including expectations for YouTube advertising revenue at $7.81 billion, Google Cloud revenue at $8.64 billion, and traffic acquisition costs at $12.63 billion.
- Business Changes and AI Investment: Google has recently undergone changes such as layoffs in various divisions, including its news division and Waymo self-driving car unit. Despite resizing efforts, the company is investing significantly in artificial intelligence (AI), particularly generative AI technology, which has the potential to impact Google’s search and advertising businesses. The company is also working to “supercharge” its products with AI and expand its AI capabilities in response to growing competition. Additionally, Google is facing ongoing legal challenges, including an antitrust trial initiated by the Department of Justice.
Alphabet, the parent company of Google, is set to report its third-quarter earnings, and analysts are closely watching for several key figures. Wall Street analysts, as surveyed by LSEG (formerly Refinitiv), are expecting earnings per share of $1.45 and revenue of $75.97 billion. Other important numbers include expectations for YouTube advertising revenue at $7.81 billion and Google Cloud revenue at $8.64 billion. Traffic acquisition costs are projected to be $12.63 billion.
Alphabet is anticipated to show a return to double-digit revenue growth after experiencing four quarters of expansion at single-digit rates. The company’s core advertising business had weakened due to economic softening and increased competition from platforms like TikTok.
During the third quarter, Google underwent layoffs in various business divisions, including its news division and self-driving car unit Waymo. Despite resizing efforts, Alphabet is investing significantly in artificial intelligence, particularly generative AI technology, which could have a substantial impact on its search and advertising businesses.
Alphabet has also experienced changes in its upper management, with the departure of finance chief Ruth Porat. Additionally, the Department of Justice initiated an antitrust trial against Google, alleging the company maintained a feedback loop with restrictive default contracts to preserve its search dominance. The trial has witnessed testimonies from prominent figures, including Eddy Cue, Apple’s senior vice president of services.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/10/24/alphabet-googl-earnings-q3-2023.html
