25 May 2023, Berlin: Sundar Pichai, CEO of Google and Alphabet, attends a press event to announce Google as the new official partner of the Women's National Team at Google Berlin. Photo: Christoph Soeder/dpa

(Christoph Soeder/Getty Images)

AI demand grows Alphabet revenue 15% to $88.3 billion

10/29/24 5:40PM

Google parent Alphabet’s third-quarter revenue grew 15% to $88.3 billion, with strong growth in its cloud computing business powered by AI computing demand.

“The momentum across the company is extraordinary. Our commitment to innovation, as well as our long-term focus and investment in AI, are paying off with consumers and partners benefitting from out AI tools,” said Alphabet CEO Sundar Pichai in a press release.

The AI rush helped Google Cloud generate revenues of $11.4 billion, a year-over-year increase of 35%. The company’s profit increased 37% to $2.1 billion.

Google’s Gemini AI model has been squeezed into pretty much all of its products, resulting in more than 2 billion monthly users of Gemini models.

Though not as sexy as the company’s many AI products, Google’s bread-and-butter search business was still a huge moneymaker, generating about 55% of Alphabet’s revenue, pulling in $49.4 billion, which grew 12% year over year.

YouTube’s Q3 ad revenue grew 12% to $8.9 billion. Youtube Shorts are really dominating the product, with 70 billion Shorts being watched every day, according to the company.

Google advertising revenue was $65.9 billion, a 10% increase year over year.

Google's Waymo self-driving taxi business is now logging more than 1 million autonomous miles and 150,000 paid rides per week.

Pichai took a moment to boast about its AI researchers, congratulating two Google DeepMind leaders Demis Hassabis and John M. Jumper for their recent shared Nobel Prize in Chemistry for work related to the AlphaFold2 AI tool, as well as former Google employee Geoff Hinton, who won the 2024 Nobel for Physics.

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eBay stock slumps on gloomy Q4 outlook despite solid Q3 earnings

Shares of eBay fell as much as 10.5% in premarket trading on Thursday morning after the company gave a lower-than-expected profit forecast for the important holiday shopping season.

The e-commerce giant reported solid numbers for the third quarter on Wednesday, with revenue up 9% as reported to $2.8 billion and gross merchandise volume rising 10% to $20.1 billion, topping the average analyst forecast of $19.4 billion, per Bloomberg.

However, concerns about the future somewhat overshadowed these results.

eBay outlined its profit outlook for the period ending in December to $1.31 to $1.36 a share, with revenue at $2.83 billion to $2.89 billion. According to Bloomberg-compiled data, this broadly matches Wall Street’s estimates for the top line, but misses on the bottom line, with analysts forecasting EPS to come in at $1.39 — suggesting the company expects some further margin pressure.

The company has been facing macroeconomic challenges since the US ended the de minimis tariff exemption in late August, with the online marketplace reliant on shipments. One small silver lining? CFO Peggy Alford highlighted a “less durable trend” on a post-earnings call: that as commodity prices for precious metals boomed, demand for bullion and collectible coins on eBay spiked.