
Google spreads its wings strongly and caresses the sky supported by advertising and the cloud
The “baraka” remained firmly placed on the side of Alphabet, the parent company of Google and YouTube, during the third quarter of the year. As in the two preceding quarters, The internet giant easily exceeded analysts’ initial expectations and grew above expectations in the period between July and September 2024. thanks to its robust digital advertising division and its thriving cloud computing business.
On Wall Street, analysts anticipated that Google’s parent company would experience year-on-year growth of 12% during the third quarter of the year. However, Alphabet far exceeded those expectations and its turnover jumped 15% to reach $88.27 billionwhile its profits were $2.12 per share (compared to the $1.85 that analysts initially expected).
«The momentum that the company is experiencing is absolutely extraordinary. Our commitment to innovation, as well as our long-term focus on AI and the investment we put into this technology, are paying offsince both our customers and our partners are benefiting greatly from our AI tools,” emphasizes Sundar Pichai, CEO of Alphabet.
Revenue generated by Google’s thriving advertising division grew by 10%while the turnover of the company’s “cloud” division soared by 35%. And as for YouTube, the figures smiled on Google’s video platform both from the point of view of the number of subscribers and the income generated from advertising.
The AI “boom” has skyrocketed the value of Google shares on the stock market
The enthusiasm caused by AI has given strength to the value of Google shares in the stock markets in recent monthswhich has increased by 20% in 2024 and more than 150% in the last five years. Google is one of the leading companies in the field of AI and has been able to capitalize on the “boom” of this technology, although it is often criticized for falling behind OpenAI and its partner Microsoft.
Even though Google brought a lot of money into its coffers in the period between July and September 2024, it also had to face large expenses, which in fact led to a year-on-year growth of 62% to $13 billion. Looking ahead to the current quarter, the multinational expects to maintain the level of spending, essential to plant the seeds of innovation, and looking ahead to 2025, it already anticipates that expenses will increase even more.
Although on a financial level the third quarter of the year was rich in good news for Google, the truth is that Between July and September the company had to deal with multiple legal problems. Last August, Google bit the dust in court against the United States Government and a judge called the company a monopoly. Since then, the United States Department of Justice has put on the table the possibility of breaking up Google to try to break its monopoly in the field of internet searches.
Pichai already announced yesterday that the measures that the US Government plans to implement were clearly excessive and that They could have dire consequences on the dynamic US technology sector.
Besides, Earlier this month a judge ordered Google to open its Play Store app store to competition after losing a lawsuit with Epic Games, the developer of Fortnite.
Another antitrust trial against Google was also initiated in September.where it is decided whether or not the company enjoys an illegal monopoly in the area of online advertising.
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