Alphabet shares gain on revenue beat from Google search

Google parent Alphabet Inc. reported second-quarter revenue that exceeded analysts’ expectations, boosted by advertising on the company’s flagship search business, which is withstanding new competition from artificial intelligence chatbots. Alphabet’s sales, excluding partner payouts, were $62 billion in the quarter, the company said Tuesday in a statement. Analysts had projected $60.2 billion, according to data compiled by Bloomberg. Search advertising performed well, generating $42.6 billion, compared with analysts’ average estimate of $42.2 billion. Shares gained more than 7% in late trading. Google’s flagship search business has weathered an advertising slowdown that affected social media companies, such as Meta and Snap, more severely in recent quarters. The company’s search product also continues to dominate despite new competitive threats from Microsoft and OpenAI, which provides an alternative called ChatGPT that answers users’ questions with conversational responses powered by generative AI. Google’s chatbot, Bard, isn’t yet as widely used. Sign up for Ad Age newsletters From influencer marketing to agencies, get the latest news and analysis delivered to your inbox Click here “Google can’t rest on its laurels,” Evelyn Mitchell-Wolf, a senior analyst at Insider Intelligence, wrote in a note. “It has a lot to prove, and as the industry clings to early signs of an ad spending recovery, these results will set the tone for the remainder of the year.” Net income was $18.37 billion, or $1.44 per share, compared to Wall Street’s $1.32-per-share estimate. The company also said that its chief financial officer, Ruth Porat, will fill in a newly created role of president and chief investment officer, starting in September. Porat will serve as CFO for the next month as the company searches for her replacement, it said. —Bloomberg News Subscribe to Ad Age Sign up now for the latest industry news and analysis Click here

Alphabet shares gain on revenue beat from Google search

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