By Alphabet, the company behind Google, has seen a strong rise in its stock value after reporting impressive earnings. The main reason is a big jump in cloud revenue, thanks to businesses spending more on AI tools and services.
Cloud customers are increasingly turning to Alphabet’s AI models for a range of applications, including content generation, data analytics, customer support, and code development. The company revealed that over 70% of its cloud customers are now using at least one of its AI-powered services.
While the cloud division stole the spotlight. Google Search and YouTube continued to grow steadily, driven by AI-powered ad targeting and personalized content delivery.
Revenue from advertising rose 9%, led by strong performance in YouTube ads, which benefited from increased monetization and short-form content engagement. Analysts noted that AI-driven enhancements have improved user targeting, reduced ad waste, and boosted click-through rates.
Alphabet also impressed investors with improved profit margins. The company’s operating margin climbed to 29%, up from 25% in the same quarter last year.
The company hinted at upcoming AI-enhanced consumer tools that could reshape user experiences across Android, Search, and Workspace.
The company’s strong performance helped its shares rise by more than 7% in after-hours trading. Alphabet’s main source of income, which is advertising, also did well.
Google Search and YouTube ads brought in solid revenue, growing by 9%. YouTube in particular saw strong engagement from short videos, and AI-powered ads made the results even better.
On top of that, Alphabet managed its costs wisely and reported improved profit margins. Experts believe Alphabet is in a strong position for the future.
With strong earnings, rising investor confidence, and deep AI integration across its platforms, Alphabet is proving that the future of tech and enterprise cloud is undeniably intelligent.
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FAQs
1. Why did Alphabet’s stock rise recently?
Alphabet’s stock jumped more than 7% in after-hours trading after the company reported . The main drivers were a sharp increase in cloud revenue and solid growth in advertising, boosted by AI-powered tools.
2. How is Alphabet using AI in its cloud business?
Over 70% of Alphabet’s cloud customers are now using at least one AI-powered service. These include tools for content generation, data analysis, customer support, and software development it helps businesses work faster and smarter.
3. What impact has AI had on YouTube and Google Search ads?
With AI Google Search and YouTube ads in particular saw strong engagement from short videos, and AI made the results even better. YouTube, in particular, saw strong ad revenue growth.
4. What are Alphabet’s future plans for AI?
The company hinted at upcoming AI-enhanced consumer tools that could reshape user experiences across Android, Search, and Workspace.
