Google posts ad revenue of $64.62 billion in second quarter

Alphabet, the parent company of Google, released second-quarter sales and earnings numbers after Tuesday’s bell, met analysts’ expectations but fell short on YouTube advertising income.

Alphabet announced a 28.6% year-over-year gain in profit in the second quarter of 2024. With a Q2 earnings announcement of $84.7 billion in revenue and net income of $23.6 billion, Alphabet crushed Zacks Investment Research’s prediction by over $14 billion.

Google’s advertising business is expanding, albeit more slowly than in the first quarter. The company reported ad revenue of $64.62 billion, up from $58.14 billion in the first quarter. However, this is after marketing budgets were tightened in 2022 and 2023 due to rising inflation and interest rates.

While YouTube’s ad revenue fell short of projections, it increased to $8.66 billion from $7.66 billion in the same quarter last year. Despite being the biggest video platform in the world, social media platforms like TikTok are becoming more competitive.

Compared to the same quarter last year, when net income was $18.4 billion, or $1.44 per share, it climbed to $23.6 billion, or $1.89 per share.

The CEO reported that Alphabet’s cloud division had an operational profit of $1 billion for the quarter, surpassing $10 billion in revenue for the first time.

“More than two million developers use our AI infrastructure and generative AI solutions for cloud customers, which have already generated billions in revenue.”
Income for Alphabet in the second quarter of this year increased by 14% over the same period last year, with Google and YouTube ads accounting for the majority of income

GOOGL has risen 31.5% as of now in 2024, outpacing the gains of Amazon (AMZN), Apple (AAPL), Microsoft (MSFT), and 21.1%, respectively.
All the listed equities, though, are underperforming GPU chipmaker Nvidia’s (NVDA) results this year. The business grew by 154.5% in 2024, and this month it momentarily eclipsed Apple and Microsoft to become the most valuable firm in the world.