Here's the real reason why Alphabet stock is soaring after earnings
Briefly

Here's the real reason why Alphabet stock is soaring after earnings
"The consensus among analysts covering Alphabet stock was for revenue of about $100 billion. Strong advertising sales at Google and YouTube, and robust demand for artificial intelligence compute power at Google Cloud, resulted in revenue of $102.4 billion, up 16% year over year. Google services, including Search, Android, YouTube and Chrome, saw revenue of $87.1 billion, up 14.5% year over year, thanks to ad demand and higher ad prices."
"Profit grew even faster than revenue. Alphabet's operating margin was 30.5%, and its net income was nearly $35 billion, up 33%. Its earnings per share, or EPS, of $2.87 increased 35%, outpacing analysts' $2.27 target. As expected, most of its operating profit, some $33.5 billion, came from Google Services. However, what really stands out is the leverage in Google Cloud. Its operating income surged a whopping 85% year-over-year to $3.6 billion."
Alphabet reported quarterly revenue of $102.4 billion, a 16% year-over-year increase that exceeded analyst expectations. Google services revenue reached $87.1 billion, driven by Search, Android, YouTube and Chrome, with higher ad demand and prices. YouTube ad sales were $10.3 billion, subscriptions rose 20.8% to $12.9 billion, and Google Cloud revenue jumped 34% to $15.2 billion amid growing AI compute and client training. Operating margin was 30.5% and net income nearly $35 billion, up 33%. EPS rose 35% to $2.87, beating consensus. Google Services supplied most operating profit while Google Cloud operating income surged 85% to $3.6 billion.
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