After the search giant reported second-quarter earnings results that proved stable amid a period of growing macro concerns, the company's stock price surged as much as 8%. Key numbers were listed. Revenue was higher than analyst estimates. The earnings per share were higher than analyst estimates. The revenue was higher than analyst estimates. Getty Images
The company's search and cloud divisions helped drive most of the growth, according to the CEO. The investments we've made over the years in artificial intelligence and computing are helping to make our services particularly valuable for consumers and businesses of all sizes.
As a potential economic recession could lead to a slowdown in advertising spend and hurtAlphabet's business, investor concerns have not been fully alleviated. Last week, this scenario was seen in the big earnings miss by Snap, which sent its stock down 40% in one day.
So far, it's been good for the company. "Alphabet shows digital ad business isn't falling off a cliff and is stable with some soft spots," he said. Some Wall Street analysts are not enthusiastic about the future of the company.
The global economic outlook was characterized by the terminology "uncertain/uncertainty" 13 times during the conference call.
The company's year-over-year revenue growth of 16.3% exceeded his estimate. The revenue beat was driven by a resurgence in travel and retail advertising spending.
Goldman is cautious in their growth outlook due to the possibility of a recession.
While this set of results were broadly inline with our expectations, the overall digital advertising and cloud computing outlook remain volatile for the coming quarters as an output of the macroeconomic environment
A combination of better-than-feared quarterly results from Microsoft and a solid earnings outlook from Alphabet helped propel the Nasdaq 100 higher on Wednesday.
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