Alphabet on Thursday delivered largely better-than expected earnings results that showed the search and cloud giant is finally on better footing in the fast-growing AI space. Total revenue in the three months ended June 30 rose 13.6% year over year to $84.
74 billion, outpacing the $84.19 billion expected, according to estimates compiled by data provider LSEG. Earnings per share jumped 31% on an annual basis to $1.
89, exceeding the $1.84 expected, LSEG data showed. Alphabet Why we own it : Alphabet's Google Search is an invaluable tool for advertisers.
Its YouTube platform continues to gain screen time with viewers and stands to grow even more as the company looks to acquire major league sports rights. Though it did get off to a bumpy start, we believe Alphabet to be a leader in artificial intelligence research and see progress aiding cloud-computing growth over time. Competitors : Amazon , Microsoft and Meta Platforms Weight in portfolio : 2.
73% Most recent buy : March 4, 2022 Initiated : July 22, 2014 Bottom line Alphabet management demonstrated a strong dedication to keeping costs in check, evidenced by the lower-than-expected traffic acquisition costs. This led to a better-than-expected operating margin result and an earnings beat. We attribute the after-hours selling to nothing more than profit-taking.
There isn't much cause for concern with the company's fundamentals. Strong numbers in the company's search and cloud businesses more than offset the slight misses in the Yo.