Alphabet, the parent company of Google, exceeded Wall Street expectations with its second-quarter profit announcement on Tuesday. Additionally, they revealed that their long-time CFO, Ruth Porat, would be assuming a new role while the company searches for a new finance chief. The strong demand for Alphabet’s cloud services and a rebound in advertising contributed to their positive results, resulting in a more than 6% increase in their shares during after-market trading. However, rival company Microsoft’s shares experienced a slight decrease after they reported their own results on the same day.
Ruth Porat, who joined Alphabet in 2015, is a highly respected female executive in Silicon Valley and has played a significant role in the company’s impressive growth. Starting from September 1, she will take on the positions of Chief Investment Officer and President. In her new role, Porat will oversee Alphabet’s “Other Bets” portfolio, which encompasses more risky hardware and services ventures. She will also assist in managing the company’s global investments. Porat was previously the finance chief at Morgan Stanley before joining Alphabet.
Google, a subsidiary of Alphabet, reported second-quarter revenue of $74.6 billion, surpassing analysts’ estimates. Advertisers, who contribute significantly to Alphabet’s revenue, have reduced their spending on untested platforms. This trend has benefited Alphabet and also Meta Platforms, the owner of Facebook. Furthermore, Google Cloud, one of the leading cloud service providers, experienced a 28% increase in revenue to reach $8.1 billion. This exceeded expectations of $7.75 billion and maintained a similar growth rate as the previous quarter. Ad sales for Google’s YouTube video service unit also grew by 4.4%, amounting to $7.67 billion.
Alphabet’s net profit for the April-June period was $1.44 per share, surpassing estimates of $1.34 per share. The company’s overall revenue for the quarter reached $74.6 billion, exceeding estimates of $72.82 billion, according to Refinitiv data.
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