Google parent firm Alphabet reported a 28.6% year-on-year profit increase in Q2 2024, driven by its cloud business and despite significant losses from its AI research division.
Points
- Alphabet reports a 28.6% profit surge in Q2 2024.
- Losses from AI research division nearly doubled to $2.3 billion.
- Cloud business revenue exceeded $10 billion with a $1 billion operating profit.
- Alphabet’s shares remain flat before falling post-earnings report.
Google parent firm Alphabet posted a 28.6% year-on-year boost in profits in the second quarter of 2024, despite a $2.3 billion loss from its AI research division. This impressive profit increase was primarily driven by the success of Alphabet’s cloud business, which topped $10 billion in revenue for the first time and produced a $1 billion operating profit for the quarter.
Alphabet’s reported loss from “Alphabet-level activities” nearly doubled from $1.2 billion in Q2 2023 to $2.3 billion in Q2 2024, highlighting the substantial investment in AI research and development. The CEO noted that Alphabet’s AI infrastructure and generative AI solutions for cloud customers have already generated billions in revenue and are being used by more than two million developers.
“Our AI infrastructure and generative AI solutions for cloud customers have already generated billions in revenue and are being used by more than two million developers.”
Despite the positive financial results, shares in Alphabet Inc Class A （GOOGL） remained flat on July 23 before falling over 2% after the firm released its financial statement. However, GOOGL is currently up 31.5% so far in 2024, outperforming major competitors such as Microsoft （MSFT）, Apple （AAPL）, and Amazon （AMZN）.
For more updates, follow Alphabet’s latest announcements on their [official
https://x.com/EconomyApp/status/1815850331269652811
解説
- Profit Surge: Alphabet’s substantial year-on-year profit increase underscores the company’s robust performance, driven primarily by its thriving cloud business.
- AI Investments: The significant losses from AI research reflect Alphabet’s aggressive investment strategy aimed at pioneering advancements in artificial intelligence, which holds long-term potential despite short-term financial impact.
- Market Reaction: The mixed market response, with shares initially remaining flat and then falling post-earnings report, indicates investor caution amidst the high spending on AI.
- Competitive Performance: Alphabet’s overall strong market performance in 2024, outpacing key competitors like Microsoft, Apple, and Amazon, highlights its strategic position and growth potential in the tech industry.