Google’s parent company, Alphabet, is set to announce its second-quarter results after the market closes on Tuesday. Investors eagerly await this report, as it will provide insight into the advertising market, cloud spending trends, and updates on artificial intelligence investments.
According to a FactSet poll of Wall Street analysts, earnings of $1.34 per share and sales of $72.86 billion are expected for the quarter. Google’s advertising revenue is predicted to reach $57.45 billion, while cloud revenue is projected to be $7.87 billion.
Despite recent pullbacks from advertisers, Alphabet shares have remained strong, with a 38% increase this year and a 13% rise over the past 12 months. Several analysts have raised their expectations for the stock in recent weeks, with the average price target reaching $134.94 on FactSet.
While Alphabet has managed to retain advertisers better than smaller platforms, the stock’s recent success has largely been fueled by excitement surrounding generative artificial intelligence. This topic will be a significant focus for investors as they seek to identify tech players well-positioned for the anticipated $800 billion AI Revolution in the tech industry over the next decade, as noted by Wedush analyst Dan Ives.
While it may still be too early to determine clear winners and losers in this area, investors eagerly await any clues that can guide their decisions.