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Google’s parent company, Alphabet, reported profits from the second quarter after the market closure on Wednesday, which exceeded Wall Street expectations, since the company cited an impulse from its cloud business and search before an imminent antimonopoly failure that could force its Chrome browser.
Key data
Alphabet had revenues of 96.4 billion dollars and profits per share of $ 2.31 to the second quarter, above the forecasts of analysts of 94 billion and $ 2.18 per share, according to FACTSET.
This represents an interannual increase of 14 % in income and a jump of 22 % in profits per share.
The company reported 13.6 billion dollars in revenues of its Google Cloud business, an year -on -year increase of 32 %, well above the expectations of up to 27 % growth, and 54.1 billion dollars in search of search, slightly above the projections of up to 54 billion.
Wednesday’s report follows the report of the first quarter of Alphabet, better than expected, earlier this year, in which the company reported an interannual growth of 12 % and 49 % in its income and profits, respectively, after the Google search unit generated more sales than those projected by analysts.
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When is Google’s call calls?
Alphabet will make his call for the second quarter results through a live broadcast on YouTube, which will begin at 4:30 PM EDT.
The antitrust failure against Google looms on investors
Some economists have mixed expectations regarding Alphabet’s actions, citing the decision of a federal judge who will be issued next month on what measures Google should take after having determined that the company maintained an illegal monopoly in searches. The Department of Justice has requested that Google be forced to sell its Chrome browser and to make radical changes in how searches work in its Android mobile operating system, although Google has criticized the DOJ proposal by qualifying it as a “radical interventionist agenda that would harm the Americans and the global technological leadership of the United States.” Analysts of Cantor Fitzgerald maintained a “neutral” rating for Alphabet’s actions until they “obtain clarity” on the antimonopoly failure against Google. Bank of America raised its target price for shares of 200 to 210 dollars in a note last week, adding that the failure is the “question they would like to do, but Google cannot answer at this time.”
Key history
Alphabet’s actions are almost unchanged in the year after recovering from a strong fall between February and April. The company has lagged with other actions of the “Magnificent Seven” group and the S&P 500, since investors expressed concerns about Google’s competition in the search engines market. However, the company launched several AI products during its second quarter, including an association of smart glasses with Warby Parker, an investment fund for AI and Google startups testing its “IA” mode for Google Search. Earlier this month, Openai added to Google to his list of suppliers, since the firm of IA said he would use the Google cloud infrastructure for Chatgpt. Alphabet has also announced advances with its Waymo autonomous cars unit, which the company said it will soon expand to New York.
What to observe
Apple and Tesla, who also reported profits after the closure of the market on Wednesday, are the first actions of the “Magnificent Seven” group in publishing reports of the second quarter. Meta and Microsoft will report their profits from the second quarter on July 30, followed by Amazon and Apple on July 31 and Nvidia on August 27. According to FACTSET, it is projected that all companies have combined gain growth of 14% in the second quarter.
This article was originally published by Forbes US
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