The strong performance was mainly driven by the robust results from Google's Search and Cloud services. The Cloud business surpassed $10 billion in quarterly revenue for the first time, significantly contributing to the overall 14% revenue increase compared to the same quarter last year.
Alphabet's CEO, Sundar Pichai, credited the successful quarter to the 'ongoing strength in Search and momentum in Cloud,' while highlighting the company's advancements in AI and infrastructure leadership.
The bar was high for GOOGL this quarter and largely met - strong Search growth, Operating Margin upside & Cloud growth acceleration. The ointment flies were a) The YouTube Ads revenue miss, tho the growth decel (8 pts) can largely be explained by the tougher comps (7 pts); and b) the muted Q3 Operating Margin commentary, tho we view this largely as a Pixel launch timing factor and continue to believe that GOOGL is a new margin expansion story going forward.
[
Collection
]
[
|
...
]