Alphabet shares jump on beat and strong cloud growth
Summary
Shares of Alphabet rose nearly 5.5% at the start of trading Wednesday, driven by stronger-than-expected second-quarter earnings and marked year-over-year growth in cloud computing revenue. The company on Tuesday reported adjusted earnings per share of $1.44, more than the $1.34 expected by a Refinitiv survey of analysts. Google Cloud competes with Amazon Web Services and Microsoft Azure. "While questions will remain about AIs impact on core products (e.g. if such a shift can be disruptive over the short-term) or costs structure (e.g. if computing costs per search will rise), we see Alphabet as the leader in compounded AI investment in the past 5-6 years and well positioned to capitalize on this trend in the coming decade," Goldman Sachs analyst Eric Sheridan said. Porat will remain in the role until a successor is identified, the company said in a press release.