The Google-Mutter Alphabet grows vigorously
The Google Parent Alphabet Presents Itself to Investors in Top Shape: The Cloud Business is Thriving and the Core Business of the Corporation - Advertising - is Running Smoothly.
Due to booming cloud businesses and robust advertising revenues, Alphabet has again significantly grown. The company's revenue increased by 14% in the second quarter to $84.74 billion, according to Google-Mother's statement after the US stock exchange closed. This was the fourth consecutive quarter with double-digit percentage growth rates. Analysts had expected earnings of $84.2 billion.
Approximately two-thirds of its money makes the US company with internet advertising. These revenues grew by 11% in the reporting period to $64.6 billion. The cloud revenues surprisingly increased significantly by nearly 29% to $10.35 billion. The cloud sector had also been above average in the previous quarter, but did not quite reach the levels of Microsoft Azure. Microsoft's quarterly results are scheduled for the coming week.
All cloud providers benefit from the ongoing boom in Artificial Intelligence (AI), as these programs require a lot of computing power. The Alphabet subsidiary Google is also competing with Microsoft partner OpenAI in a race for technological leadership in AI. Google presented a new version of "Gemini" at its developer conference in May, which competes with OpenAI's ChatGPT.
At the presentation of the figures for the first quarter, Alphabet had announced an approximate doubling of investments to $12 billion and thus alarmed some investors. Company CEO Sundar Pichai had emphasized at the time that these expenses were justified by the AI boom and the growing need for server capacity.
Acquisition of Wiz Falls Through
Independently, the largest acquisition in Alphabet's corporate history is on the verge of collapse. The Israeli software company Wiz rejected a $23 billion takeover offer and ended the negotiations about it, according to an internal letter from Wiz CEO Assaf Rappaport, which the news agency Reuters was able to see.
Wiz declined to comment on the matter, while the Alphabet subsidiary Google was initially unreachable for a comment. Neither of the two companies had previously confirmed the acquisition talks officially. In the current Wiz company-wide letter, no names were mentioned. The cybersecurity specialist intends to focus on its originally planned IPO again.
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The quarterly figures presented by Alphabet Inc., the parent company of Google, showed a 14% revenue increase, with the cloud business contributing significantly to this growth. Analysts expected Alphabet's economy to grow at a rate of $84.2 billion, but the actual quarterly figures for the economy exceeded this expectation by $500 million.
