Google to bring the gain in the second quarter while Wall Street is looking for IA income gains
Google Parent Alphabet (Goog, Googl) will publish its second quarter results after the Bell on Wednesday while the company continues to overcome the wave of artificial intelligence.
Alphabet is one of the largest and most advanced companies in space, thanks to its vast network of data centers and gemini models. According to the CEO of Sundar Pichai, the company’s preview of the company already attracts 1.5 billion users, and its IA services see 2x of longer queries than its traditional research product.
According to the global research analyst of Bofa Justin Post, the potential positives for the quarter include the increase in advertising spending, the AI helping to supply the revenues and performance of the solid cloud.
“We remain constructive on Google’s ability to generate the use of AI despite cautious feeling, and see gemini improvements, the integration of AI mode in research and the price of the workspace increases as the main positive YTD,” post in a note to investors.
For the quarter, Google should display a profit adjusted per share of $ 2.17 on income excluding traffic acquisition costs (TAC) of $ 79.6 billion, a leap of 11.6% compared to the same period last year, when the company recorded a turnover of $ 71.3 billion, according to data from the consensus Bloomberg.
Advertising revenues should reach $ 69.6 billion, up 7.7% from one year to the next, with research with $ 52.7 billion. YouTube’s advertising revenues should start at $ 9.5 billion.
Google Cloud Platform returned should reach $ 13.1 billion, up 26%. The cloud operating profit is expected to reach $ 2.2 billion, climbing 91% from one year to the next. However, this is much lower than the 196% improvement that the company declared during the same period last year.
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Google, like its other major technological peers, also puts pressure for employee buyouts while industry continues to reduce the workforce more widely. Amazon (Amzn), Meta (META) and Microsoft (MSFT) have or plan to reduce jobs in the middle of massive capital expenditure for their AI constructions.
This year, Google is expected to drop $ 75 billion to extend its AI capabilities, including massive data centers operating on its own local chips and Nvidia processors.
Despite this, the main vice-president of Google and the financial director Anat Ashkenazi told analysts when the company’s first quarter of the company he continued to face AI capacity problems when demand exceeds the available computer power. Expect that investors are planning to know if it changes to T2.
Google is also faced with potentially devastating consequences for the decision of a judge who considered him responsible for antitrust violations during research. The judge Amit Mehta of the American district court of the Columbia district should render a decision on the “appeal” which follows the victory of the Ministry of Justice against the Society next month.
