Alphabet is set to release its Q2 2024 earnings report, with key metrics indicating a slight decrease in EPS but continued revenue growth driven by its diverse business segments.
Points
- Alphabet to release Q2 2024 earnings, with EPS estimated at $1.85.
- Projected revenue is $84.21 billion, up from $80.54 billion in Q1.
- Ad business remains the main revenue generator, with significant contributions from Google Services.
- AI integration and potential acquisitions to drive future growth.
On July 23rd, Alphabet （NASDAQ: GOOGL） will release its Q2 2024 earnings report, closing a quarter marked by continued revenue growth and strategic expansions. Year-to-date, Alphabet shares have risen by 31%, positioning the company between its main competitors, Microsoft （up 19%） and Meta Platforms （up 40%）.
For Q2, the average earnings per share （EPS） estimate stands at $1.85, a slight decrease from $1.89 in Q1. Meanwhile, the average revenue estimate is projected at $84.21 billion, compared to $80.54 billion in Q1, marking a 15% year-over-year increase. Google Services contributed $70.4 billion to Q1 revenue, and similar strong performance is expected in Q2.
Alphabet has expanded its business beyond ad revenue, delving into hardware （Pixel, Nest, Fitbit）, autonomous vehicles （Waymo）, high-speed internet, and AI development. The growing hype around AI has made its integration a critical valuation driver moving forward.
However, Alphabet’s AI integration has faced challenges. Despite having a wide network effect and significant market share, Google Cloud ranks third behind Amazon Web Services （AWS） and Microsoft Azure. This indicates a lagging AI posture, despite the potential for deeper integration with products like the upcoming Google Pixel 9 series.
Alphabet is also reportedly negotiating the acquisition of cybersecurity firm Wiz, a move that could bolster its cloud business and security offerings. This follows a trend of significant acquisitions in the tech industry, aiming to enhance service integration and market presence.
解説
- Alphabet’s Q2 2024 earnings report will provide insight into the company’s ongoing growth and strategic direction.
- Despite a slight decrease in EPS, projected revenue growth reflects the strength of Alphabet’s diverse business segments.
- AI integration remains a critical focus, with potential acquisitions like Wiz set to enhance Alphabet’s capabilities and market position.
- Alphabet’s performance in the cloud market highlights both its strengths and areas for improvement compared to competitors AWS and Azure.
- Investors should watch for updates on AI developments and potential acquisitions, as these will significantly impact Alphabet’s future growth trajectory.