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Google parent Alphabet (GOOG, GOOGL) reported second quarter earnings that beat analyst estimates on both the top and bottom lines. The company reported earnings per share of $1.89 versus an estimate of $1.84. Revenue of $84.74 billion topped estimates of $84.37 billion, while revenue ex-TAC of $71.36 billion was better than the Street's expectations of $70.7 billion.
In the individual units, Google Cloud and Google Ad revenue was better than expected, but YouTube ads revenue fell short.
Market Domination Overtime anchors Julie Hyman and Josh Lipton break down the tech giant's results.
For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.
This post was written by Stephanie Mikulich.
we're just getting news out from Alphabet or earnings out from Alphabet, that is, the company's earnings per share beating by 5 cents, a buck 89 versus the dollar 84 that had been anticipated. Revenue coming in slightly ahead of estimates at 84.74 billion dollars, 83.37 billion dollars beating estimates. And I want to bring you the various business lines as well. YouTube ads revenue 8.66 billion dollars slightly below estimates. Google Cloud revenue of 10.35 billion dollars slightly ahead
of estimates. Um and Google ad revenue overall at 64.62 billion. That was really a key number that analysts were zeroing in on 64 and a half billion is what analysts had anticipated there. So that Google ad revenue number is a little bit better than estimated. Overall revenue X traffic acquisition cost rising to 71.36 billion dollars and the company still has its cash dividend of 20 cents a share, which it announced for the first time last quarter here. So overall
I'm seeing these numbers as relatively good. Maybe they didn't blow things out of the water enough because those shares, the quick reaction here is a drop of a little more than 3% here, Josh. So um interesting to see that the shares are up at what, about 30% this year. Um they've been rallying, of course, with many of the other tech mega caps. So perhaps that's also what's reflected in in the share price.
Yeah. I I think that's right. You even heard some bulls on the street um heading into this print, Julie. They were kind of sound a little bit nervous in their previews because the stock had been up that strong 30% year to date. They were just kind of wondering how much news that was baked in. We're getting a little bit of a lift though off the lows down, now down about one and a half percent. I think some of the numbers you called are just right. I mean, I think a lot of the focus on YouTube ads revenue, why exactly that came in a bit light 8.66, again consensus 8.95. Google Cloud though revenue, you know, that's another, you know, certainly a metric investors make a beeline for now. That did beat their 10.35. Um and obviously there, Google is is going head-to-head with the heavyweights in terms of Amazon and Microsoft. You know, as always, we we don't get a formal forecast um from from Alphabet. So you wait for the call to hear what what CEO Sundar Pichai and of course um Ruth Porat have to say about the outlook.
Yeah, and I'm just looking speaking of those two, I'm just looking at the statement now and Sundar Pichai in the statement talking about ongoing strength and search and momentum in cloud, innovating at every layer of the AI stack, right? Um and the company talking about their long-standing infrastructure leadership here. um as a an area of strength. Ruth Porat who now is the president and chief investment officer, um and CFO, she's got a new title, of course. Um delivering revenues, she said of 85 billion dollars, which is up by 14%. Points out that that cloud number for the first time was above 10 billion dollars on a quarterly basis.
Yeah, yeah, I think one more other issue. It'll be interesting how analysts kind of frame this in the call. These reports on Wiz Julie um just rejecting Google's $23 billion offer, seeking an IPO instead. Does that, you know, I think one question investors have is, you know, now if Google can't make that happen, does that leave a hole in any way for Alphabet in its portfolio?
