"Google's parent company, Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) announced a 16% hike in third-quarter revenues, with growth throughout its digital advertising and cloud computing units set to finance the company's emphasis on developing its artificial intelligence infrastructure. Sales soared to a record $102.3 billion for the quarter, beating analyst expectations and fueling investor optimism for the stock's long-term prospects. Net income grew 33% over the same period last year to hit around $35 billion."
"Most notably, Google's cloud division, which sells computing power to data centers, has grown exponentially alongside the tech giant's bid to develop artificial intelligence, with the company's cloud unit hitting $15.2 billion in quarterly revenue at a 34% increase from Q3 2024. Perhaps the most critical detail of Alphabet's third-quarter earnings report was the firm's bold expectations for substantial capital expenditures over the year ahead, with much of its revenue streams being used to build data centers to build and run AI models."
Alphabet reported 16% third-quarter revenue growth to a record $102.3 billion, and net income rose 33% to about $35 billion. Digital advertising and cloud computing fueled the gains. Google's cloud unit reached $15.2 billion in quarterly revenue, a 34% increase from Q3 2024. The company plans substantial capital expenditures to build data centers and AI infrastructure, raising 2025 capex estimates to $91–$93 billion from $52.5 billion. Shares rose 6% in after-hours trading on the results. The results underscore continued heavy investment in AI infrastructure and sustained investor optimism for AI-driven growth.
Read at Benzinga
Unable to calculate read time
Collection
[
|
...
]