Driven by the explosion of its cloud activity, Alphabet achieved exceptional performance and quadrupled its net profit over one year.
Alphabet recorded better than expected results in the second quarter, driven, once again, by the growth of its remote computing (cloud) activity, essential to artificial intelligence (AI), whose revenues almost doubled. A marginal activity just fifteen years ago, remote computing has become one of Alphabet’s driving forces, to the point of now accounting for 20% of turnover, which reaches $119.8 billion in total.
Google Cloud, which jumped 82% year-on-year, illustrates the transformation of Alphabet’s economic model, which increasingly relies on the cloud to support its growth and meet the needs generated by the rise of artificial intelligence.
Turnover increased by 24% compared to the same period of the previous year. Net profit benefited from an exceptional element, namely the appreciation of stakes held by the group in other companies, which propelled it to 112 billion dollars (quadrupled over one year), according to a press release published on Wednesday. These holdings, the nature of which Alphabet did not specify, gained $98 billion in value during the quarter.
All divisions of the group are showing growth, with the exception of Google Network (advertising revenue on own or partner sites).
Artificial intelligence, a catalyst for growth
“Another impressive quarter for Google, especially when it comes to AI,” commented Emarketer analyst Nate Elliott.
The publication caused little reaction from investors. In electronic trading after the close on Wall Street, the title appreciated by 0.21%.
