Google AI Investments: Google, which is a really big tech company owned by Alphabet Inc., has recovered from a really bad time when they didn’t make as much money from advertising. This means they are growing again and can now spend money on developing artificial intelligence (AI) technology. This comeback is seen as crucial to maintain its dominance in the digital ad realm amid intensifying competition.
In the months of April to June, Google made more money from ads compared to the same time last year. They earned $58.1 billion, which was more than what experts predicted. The recovery happened after a few quarters of going down, which made people worry about how good Google is at making money. This is especially true because AI technology was getting better and might have made Google’s search engine less popular.
The amount of money Alphabet made went up by 7% from last year, and they made a total of $74.6 billion. Their money they made also went up by 15% to $18.4 billion, which is $1.44 for each share. This was even better than what the smart people predicted.
As part of Alphabet’s big plan, Ruth Porat, who takes care of money stuff, will also be in charge of other important things like being the boss and deciding where to invest the company’s money.
The company is going to start searching for a new person to be in charge of the money (CFO).
The price of Alphabet’s stock went up by almost 10% after the market closed when they shared their really good results.Throughout the year, the company’s shares increased by almost
50%.
This happened after Google talked about their AI products and plans in May. People were worried about Microsoft’s progress with Open AI and ChatGPT, but Google’s presentation made them feel better.
The boss of Alphabet, Sundar Pichai, talked a lot about how search has been super innovative lately during a phone call in London. He also went to visit the DeepMind team who are working on AI stuff.
The search for AI dominance is gonna need a lot of money, but Google’s ads money could pay for it if they keep making more. The search for AI dominance is gonna need a lot of money, but Google’s
ads can pay for it if they keep making more money.
Evelyn Mitchell-Wolf, who studies stuff for Insider Intelligence, said that Google is in a good spot and needs to keep making money while doing its plans to be the top choice for ads and people who use AI. They shouldn’t have any big problems along the way.
Notably, YouTube, after experiencing ad sales declines, rebounded with a 4% increase in ad revenue. The Google Cloud division also made significant strides, reporting a 28% revenue increase from last year and achieving its second consecutive profitable quarter.
Ruth Porat getting promoted shows that Alphabet really wants to be careful with money and make sure shareholders get good returns. They also want to make smart investments that will create value in the long run.
The plan also wants to make less money lost in the “Other Bets” part, which includes projects like Waymo. These projects take a long time to make money.
As Alphabet’s president, Porat will oversee the Other Bets portfolio. In conclusion, Google’s really good comeback in making money from ads shows that they really want to stay on top in the tech
industry’s AI-driven world. Google is working really hard to make their stuff better and use cool new technology. How well they do will be super important for how ads and stuff for us consumers will be in the future.