Google parent Alphabet beats Q2 revenue, profit estimates on strong ads, cloud
Alphabet beat second-quarter revenue and profit estimates on Tuesday, driven by a rise in digital advertising sales and healthy demand for its cloud computing services, but flagged that capital expenses would remain high for the year.
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Alphabet's results underscore robust demand for digital ads, driven by events like the Paris Olympics and elections in several countries including the U.S., while a recovery in enterprise spending is boosting its software business.
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Offering CollegeCourseWebsiteIndian School of BusinessProfessional Certificate in Product ManagementVisitIndian School of BusinessISB Product ManagementVisitMIT xPROMIT Technology Leadership and InnovationVisit Strong adoption of generative artificial intelligence technology drove its cloud business.
Advertising sales, Alphabet's chief revenue source, rose 11% to $64.6 billion. The company sells ads in its search product using customer data to better target them.
Net income in the quarter ended June 30 rose 28.6% to $23.6 billion, besting the average estimate of $22.9 billion.
Investor reaction was mixed, with the shares initially rising about 2% before dipping by a similar percentage. They had gained more than 30% this year, outperforming a 20% rise in tech-heavy Nasdaq Composite Index.
«This was another stellar quarter from Google with beats across
