Alphabet Q2 Earnings: Revenue, EPS Beat Estimates, Google Parent Raises CapEx Outlook Due To 'Strong And Growing' Cloud Demand

Benzinga

Alphabet reports second-quarter revenue of $96.43 billion, beating analyst estimates of $93.72 billion. The Google parent reports second-quarter earnings of $2.31 per share, beating estimates of $2.16 per share.

Transcript

00:00Okay, next, we're going to take a look at Google. I kind of already talked a little bit about Google

00:04because we had had a swing trade on leading into earnings that was really, really good.

00:09Well, here we go. I had deleted the other day the head and shoulders that I had preemptively drawn

00:16on here because I wanted to see if Google was going to fill out that right shoulder. I decided

00:22that, man, if you just move that up a little bit, it's pretty equal. It's pretty even to the left

00:26shoulder. And look, Google's price was chilling right under that. Well, thank gosh for the earnings

00:30because that popped us above this. And I think it's probably official. We can delete this. Now,

00:35I'll wait for the end of the day here just in case Google has some massive reversal here today.

00:40Google up three bucks or 1.72% here in the pre-market. You can see this is what the

00:44intraday chart looks like. So the other thing here on this one is that while it is moving higher here,

00:54it's only moving higher here by 1.72%. And if we take a look back at the newsfeed here,

01:01where was that? Options implied a 5.3% move. So despite Google moving in the upside direction here,

01:11it didn't move nearly as much as the options predicted. As a result, that should favor option

01:18sellers. However, Google is moving higher here. So again, the one thing that I'm going to be looking at

01:23here today, do we get a reversal? Because if we do, boy, oh boy, it looks like we have the makings

01:30here of a head and shoulders. We have a neckline down here at about 165, maybe even a little bit

01:35lower. And we have a couple of these moving averages that might catch this price around 175 as

01:40well. So something to think about here on Google. Been nice to us recently, but we'll see how this

01:48actually trades. Now let's dive into the report. Thank you, producer, for some of the important stats

01:51there. Alphabet reported financial results last night. Google's parent Alphabet recorded second

01:56quarter revenue of 96.43 billion, beating analyst estimates of 93.72 billion. And the company reported

02:02second quarter earnings of 231 per share, which beat the 216 estimate. Alphabet has now exceeded

02:08analyst expectations for the top and bottom lines in 10 straight quarters. According to Benzinga Pro,

02:1410 straight quarters. Alphabet's earnings per share were up 22% year over year. Total revenue was up 14%

02:21year over year, driven by robust momentum across the businesses. Here's a breakdown of the revenue by

02:26category. Google search, 54.19 billion. That's up from 48.5 billion year over year. So the talk of

02:35Google searches demise greatly exaggerated, it would appear as that still continues to print money.

02:41YouTube advertising, 9.8 billion. That's up from 8.66 billion year over year. Google cloud, 13.6.

02:49That's up from 10.35. And Google advertising, 71.34. That's up from 64.62. Google just absolutely

02:58crushing it as per usual. Alphabet ended the second quarter with approximately 95.15 billion in cash and

03:05cash equivalents and marketable securities. We are leading at the frontier of AI and shipping at an

03:12incredible pace. AI is positively impacting every part of our business, driving strong momentum.

03:18Search delivered double-digit revenue growth. And our new feature like AI overviews and AI mode are

03:25performing well. That all comes from the CEO, Sunder Pichai. We continue to see strong performance in

03:30YouTube as well as subscription offerings and cloud and strong growth in revenues, backlog, and

03:36profitability. That is the trifecta right there. Its annual revenue run rate is now more than $50

03:42billion. Alphabet increased its capital expenditures outlook for 2025 to approximately $85 billion due to

03:49strong and growing demand for its cloud products and services. So they had their conference call.

03:54Google's higher here today. Really, does it finish higher here today? Let me know. What do you folks

03:59think about Google? Are you looking to trade this? Does this report help? Are you more inclined to trade

04:05it now that the report is out of the way? Did anyone try to trade this for earnings? If you did, I'd like to

04:12hear what your strategy was for that.

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