We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Alphabet's (GOOGL) Q2 Earnings to Benefit From Google Cloud
Read MoreHide Full Article
Alphabet’s (GOOGL - Free Report) second-quarter 2023 results, scheduled to be released on Jul 25, are likely to reflect gains from its strengthening cloud service offerings.
The company’s cloud services arm — Google Cloud — has become the key catalyst behind its business growth.
Alphabet’s cloud offerings include Google Cloud Platform and Google Workspace, which have been continuously gaining momentum in the booming cloud computing market. Google’s growing investments in infrastructure, security, data management, analytics and AI have been major positives.
The Google Cloud segment, which derives revenues from fees collected for Google Cloud Platform services and Google Workspace collaboration tools, has constantly been driving substantial revenue growth for Alphabet.
Revenues from the segment were $7.45 billion in first-quarter 2023. The figure accounted for 10.7% of total revenues and exhibited year-over-year growth of 28%.
For second-quarter 2023, the Zacks Consensus Estimate for Google Cloud’s revenues is pegged at $7.72 billion, suggesting growth of 22.9% from the prior-year quarter’s reported figure.
Click here to know how the company’s overall second-quarter results are likely to be.
GOOGL’s efforts in integrating data lakes, data warehouses, data governance and advanced machine learning into a single platform are expected to have bolstered its prospects in the cloud market during the to-be-reported quarter.
Further, its strengthening efforts toward expanding its cloud services portfolio, data centers, availability zones and regions are likely to have helped it gain share in the highly competitive cloud market.
The recent launch of a new Google Cloud region in Doha, Qatar, might have contributed well to delivering an enhanced cloud experience to the users in the country.
This apart, its robust real-time data, analytics and AI, along with its open and scalable cloud infrastructure, are expected to have helped win customers during the second quarter.
The company’s deepening focus on generative AI might have been a major positive. In the quarter under review, it rolled out consulting services, which include advice and tools to aid clients in adopting generative AI techniques.
The growing momentum with PaLM Generative AI models and Vertex AI platform is likely to have contributed well.
The solid adoption of generative AI-powered Workspace tools like Smart Canvas and Translation Hub might have been another positive.
Google Cloud’s growing efforts to identify cyber threats and automate security workflows and responses on the back of generative AI are likely to get reflected in the upcoming results.
Image: Bigstock
Alphabet's (GOOGL) Q2 Earnings to Benefit From Google Cloud
Alphabet’s (GOOGL - Free Report) second-quarter 2023 results, scheduled to be released on Jul 25, are likely to reflect gains from its strengthening cloud service offerings.
The company’s cloud services arm — Google Cloud — has become the key catalyst behind its business growth.
Alphabet’s cloud offerings include Google Cloud Platform and Google Workspace, which have been continuously gaining momentum in the booming cloud computing market. Google’s growing investments in infrastructure, security, data management, analytics and AI have been major positives.
The Google Cloud segment, which derives revenues from fees collected for Google Cloud Platform services and Google Workspace collaboration tools, has constantly been driving substantial revenue growth for Alphabet.
Revenues from the segment were $7.45 billion in first-quarter 2023. The figure accounted for 10.7% of total revenues and exhibited year-over-year growth of 28%.
For second-quarter 2023, the Zacks Consensus Estimate for Google Cloud’s revenues is pegged at $7.72 billion, suggesting growth of 22.9% from the prior-year quarter’s reported figure.
Click here to know how the company’s overall second-quarter results are likely to be.
Alphabet Inc. Revenue (TTM)
Alphabet Inc. revenue-ttm | Alphabet Inc. Quote
Factors to Consider
GOOGL’s efforts in integrating data lakes, data warehouses, data governance and advanced machine learning into a single platform are expected to have bolstered its prospects in the cloud market during the to-be-reported quarter.
Further, its strengthening efforts toward expanding its cloud services portfolio, data centers, availability zones and regions are likely to have helped it gain share in the highly competitive cloud market.
The recent launch of a new Google Cloud region in Doha, Qatar, might have contributed well to delivering an enhanced cloud experience to the users in the country.
This apart, its robust real-time data, analytics and AI, along with its open and scalable cloud infrastructure, are expected to have helped win customers during the second quarter.
The company’s deepening focus on generative AI might have been a major positive. In the quarter under review, it rolled out consulting services, which include advice and tools to aid clients in adopting generative AI techniques.
The growing momentum with PaLM Generative AI models and Vertex AI platform is likely to have contributed well.
The solid adoption of generative AI-powered Workspace tools like Smart Canvas and Translation Hub might have been another positive.
Google Cloud’s growing efforts to identify cyber threats and automate security workflows and responses on the back of generative AI are likely to get reflected in the upcoming results.
Zacks Rank & Other Stocks to Consider
Currently, Alphabet has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are Salesforce (CRM - Free Report) , Akamai Technologies (AKAM - Free Report) and AvidXchange (AVDX - Free Report) . Salesforce sports a Zacks Rank #1 (Strong Buy), and Akamai Technologies and AvidXchange carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Salesforce shares have gained 70.7% in the year-to-date period. The long-term earnings growth rate for CRM is projected at 19.25%.
Akamai shares have grown 9.5% in the year-to-date period. The long-term earnings growth rate for AKAM is projected at 10%.
AvidXchange shares have risen 21.1% in the year-to-date period. The long-term earnings growth rate for AVDX is projected at 22.90%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.