Google Q2 Earnings Preview: Three things are worth paying serious attention to
AInvestTuesday, Jul 23, 2024 7:43 am ET
1min read
GOOG --
GOOGL --

Alphabet will release second-quarter financial results after the market closes on Tuesday, revealing the magnificent 7 earnings season. Here are 3 things that should be scrutinized:

First: the growth in Alphabet's spending and capital investment for AI. Google needs to show that AI is driving Google Cloud growth, that there are no share losses in Search as users start leaning more on AI chat, and that the new models being built are competitive.

Second: the company's guidance on adv sales growth in the second half year. Media investment firm GroupM raised its 2024 global advertising growth forecast to 7.8% in June, from 5.3% in December, primarily on account of better-than-expected spending in China and the United States.

Analysts also expect strong performance at YouTube, thanks in part to expanded monetization features in its TikTok-styled video offering, Shorts.

Third: Any progress in monetizing AI cloud services (that is, will customers pay up for the company's AI offerings). The company could provide updates on projects like its AI assistants, Gemini Live and Project Astra, which could help compete with OpenAI. It may offer insights into how AI Overview is affecting Google Search. 

Google will infuse artificial intelligence into the U.S. broadcast of the Paris Olympics, allowing sports commentators to use AI to explain competitions.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.