It is expected that data on the second-quarterly revenue of Alphabet, the parent company of Google, will show an increase of 14% year-on-year, as reported by the media with reference to their own calculations and estimates of the interviewed experts.
The mentioned technology giant will publish information on its financial results for the last quarter on Tuesday, July 23. It is worth noting that the company is currently going through a very favorable period from the point of view of the condition of the economic aspect of its business. The corresponding state of affairs has become an objective reality for the technology giant as a result of the impact of factors such as sustained consumer demand for cloud services based on artificial intelligence and the dynamic of the growth in the advertising market.
It’s also worth noting that Alphabet’s revenue has been on an upward trajectory for four consecutive quarters.
The technology giant’s expected report for April- June 2024 is of particular importance as a reflection of the tendencies taking place in the artificial intelligence market. In this case, it means the opportunity to get an idea of the scale of distribution of AI services and the cost indicators associated with the development of advanced technology.
At the developer conference in May, Google presented summaries powered by artificial intelligence in the Internet search system. The company has also upgraded its Gemini machine intelligence model to improve competitiveness.
Gil Luria, senior software analyst at D.A. Davidson & Co, says investors will be looking for continued success in Search. Also, according to the expert, for investors, the signs of Alphabet’s adaptation to the new world of artificial intelligence are important. Gil Luria argues that the technology giant needs to demonstrate that AI is the driving force behind Google Cloud growth, that the share of search is not decreasing as the process of user interaction with chatbots scales, and that the new models of digital thinking being developed are competitive.
Alphabet’s investments in artificial intelligence will also be in the spotlight. From January to March of the current year, the technology giant’s capital expenditures increased by 91%, amounting to $12 billion. Some investors were alarmed by these indicators. At the same time, Google Chief Executive Officer Sundar Pichai said that the integration of artificial intelligence contributes to the growth of demand for cloud services and search businesses.
LSEG data shows that the company’s operating expenses in the second quarter of 2024 amounted to $27.57 billion, an increase of more than 32%.
It is worth noting that during the period of active dissemination and integration of AI into various functional processes, the relevance of the issue of cybersecurity is increasing. In this context, an important fact is that scammers also have access to advanced technology. In the framework of countering cybercrime, user awareness is an effective tool. For example, a query in an Internet search system such as how to know if my camera is hacked will allow anyone to get information about signs of unauthorized access to the device.
