Tue Oct 29 19:30:00 UTC 2024: ## Alphabet Expected to Post Strong Third Quarter Earnings, AI to be a Key Focus
**Mountain View, CA -** Google parent company Alphabet is set to report third-quarter earnings after the market closes on Tuesday, with analysts expecting significant revenue and earnings growth. The tech giant is projected to report a 12% year-over-year increase in revenue, reaching $86.41 billion, with earnings anticipated to climb to $23.05 billion or $1.85 per share.
Alphabet’s second-quarter results already exceeded expectations, driven by a 28% surge in revenue from Google Cloud, reaching $10.35 billion. However, the company’s stock took a hit the following day due to investor concerns about Alphabet’s increased spending on artificial intelligence (AI).
Despite these concerns, analysts remain optimistic about the potential of AI for Google Cloud. Jefferies analysts see AI as an emerging contributor, with its benefits expected to become more pronounced in 2025 and 2026. Visible Alpha analysts predict Google Cloud revenue to reach $10.87 billion in the third quarter, signifying a 29% growth.
The appointment of Anat Ashkenazi as Alphabet’s new CFO in July has also sparked anticipation for potential new disclosures. Bank of America analysts believe her first quarter in the role could shed light on Google Search’s strength, suggesting AI is driving higher monetization. They also anticipate positive updates on YouTube’s benefit from political spending and new advertising opportunities.
Shares of Alphabet have gained over 19% since the start of the year, closing at $166.72 on Monday. The company’s upcoming earnings report is expected to provide valuable insights into Alphabet’s ongoing AI investments and their impact on its financial performance.
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