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Alphabet, Google’s parent company, saw shares increase by 5.9% due to a strong Q3 performance with earnings of $88.27bn, surpassing expectations. Key factors behind this success included Google’s Cloud business, which earned $11.4bn, attributed to its AI infrastructure. Additionally, Google Ads business made the highest revenues at $65.86bn. Sundar Pichai, Alphabet’s CEO, confirmed investments in AI have significantly contributed to the company’s success. Other tech giants that are investing heavily in AI will report their earnings later this month.

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Alphabet Inc., the company that owns Google, saw its shares boost by 5.9% after exchanging hours, thanks to the impressive third-quarter performance that surpassed expectations. On October 29, Google’s share closed at $171.14, which is a 1.66% increase, and kept on rising to $181.22 post-exchange according to Yahoo Finance. So far, the share price has increased by 21.73% this year.

Google had a great third quarter, making $88.27 billion, which is a 15% increase compared to the same time in the previous year, and 2.2% more than what experts had predicted. The earnings per share also rose by 35% from the third quarter of the previous year to $2.12, surpassing the expected $1.85 by 13.6%.

In the meantime, Google’s Cloud business has done exceptionally well, earning $11.4 billion which is a massive 35% increase from the previous year. Google mentions that the success comes from their Artificial Intelligence (AI) infrastructure and the AI’s ability to create new products.

Sundar Pichai, the CEO of Alphabet and Google, expressed during a recent earnings call that the investments made in AI have really paid off and contributed significantly to the company’s success.

Other leading tech firms like Meta and Microsoft are scheduled to report their earnings on October 30, followed by Amazon and Apple on October 31. These firms, including Google, are focusing heavily on developing AI models and hardware.

Interesting to note that during the third quarter, in August, Google launched its advanced AI model, Gemini 1.5 Pro. This model was a big hit and outperformed others in tests. Google also uses AI in their coding, increasing productivity according to Pichai.

In terms of revenue, the Google Ads business made the highest earnings with $65.86 billion in the third quarter, a 10.4% increase from the previous year. The second-highest earning was the Google Search business, making $49.39 billion, which is up by 10.9% from the third quarter of the previous year.

Source: Cointelegraph