Alphabet's Cloud Division Outperforms Projections While Search Ad Revenue Falls Slightly Short

Deep News04:43

Alphabet Inc. reported second-quarter cloud revenue that surpassed Wall Street's forecasts, though sales linked to its search engine business came in slightly below expectations, potentially heightening market concerns over its substantial investments in artificial intelligence.

The parent company of Google stated that cloud revenue for the quarter ended June 30 was $24.77 billion, marking an 82% increase year-over-year. This figure exceeded the $22.46 billion analysts had anticipated. Revenue from search advertising reached $63.27 billion, just shy of the $63.28 billion analysts had projected.

Shares of Alphabet declined approximately 0.5% in after-hours trading on Wednesday. The stock had closed at $342.09 per share in New York during the regular session.

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