Alphabet Inc., the corporate parent of Google, has announced another quarter of consistent growth driven by advancements in artificial intelligence (AI) technology. The second-quarter report revealed that Google continues to attract advertisers following the introduction of an AI feature that provides conversational responses to search queries, reducing the emphasis on displaying related links to external websites.
Despite concerns from online publishers about potential traffic declines, Google remains successful, contributing to Alphabet's overall performance. Alphabet CEO Sundar Pichai emphasized the role of AI in expanding the range of queries Google can address, highlighting its transformative potential for society and the company's operations.
Alphabet reported a revenue increase of 14% year-over-year, reaching $84.74 billion for the April-June period. Earnings stood at $23.62 billion, or $1.89 per share, marking a 29% rise from the previous year. This marks the fourth consecutive quarter of revenue growth exceeding 10%, although the pace slightly slowed compared to the previous quarter.
Financial results surpassed analyst expectations, with Alphabet's stock price experiencing fluctuations in extended trading. The company's stock has surged by 30% this year, driven by optimism surrounding AI advancements and revenue opportunities.
Google's cloud-computing division, crucial for supporting AI capabilities, saw significant growth, generating $10.3 billion in revenue, a 29% increase year-over-year. This division hit the $10 billion revenue mark for the first time in a single quarter, reflecting Google's commitment to innovation across the AI spectrum.
While Google's plans to acquire cybersecurity specialist Wiz for $23 billion fell through, the company also abandoned a proposal to automatically block third-party cookies on its Chrome browser. Instead, users will have the choice to manage cookie settings themselves.
Amid its financial success and AI advancements, Google awaits a decision in a high-profile U.S. Justice Department antitrust case targeting its search engine dominance. A ruling is expected later this year following a trial in Washington.
