One of the strongest companies in the world is only getting stronger, as Alphabet has seen its revenue increase 15% based on AI and cloud-computing growth that has GOOGL stock price surging. Wednesday trading has seen the stock increase more than 6% in value on the heels of strong earnings data.
The company had far exceeded projections and noted growth in its two most important areas. Although the price was down 1.7% by midday Thursday, it had still touched highs of $176 as it showcased its strength. Now, all eyes are on how this report sets the stock up for the eventual turning of the calendar year.
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Alphabet On the Up and Up After Strong Q3 Data
In 2024, the stock market has shown a clear value of AI and cloud technology. With Nvidia (NVDA) up almost 200%, investors are betting on the continued growth in the space, with increased demand alongside it. The prevalence of those two sectors has strengthened what is already one of the strongest companies on the planet.
Alphabet (GOOGL) has seen its revenue increase by almost 15%, outperforming analyst expectations with the stock price surging due to the increase in AI and cloud growth. The Google and YouTube owners reported earnings per share of $2.12 and $88.27 billion in revenue. Those figures denote an increase of 27% and 15%, respectively, versus last years records.
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Analysts have projected $1.83 in earnings per share on $86.44 billion in revenue. The overperformance was also combined with dominance in other areas of the company. Specifically, ad revenue surpassed $65.8 billion, once again beating expert projects of $65.5 billion.
In the earnings call, Google CEO Sundar Pichai noted that its AI endeavors are driving new customers. Moreover, cloud revenue had reached $11.4 billion, which was up 35% from last year. “The business has real momentum,” Pichai said. “And the overall opportunity is increasing as customers embrace gen. AI.”