Alphabet Reports 29% Profit Increase in Q2 2024

Alphabet Inc., Google's parent company, reported a significant 28.6% year-on-year increase in profits for Q2 2024, achieving net income of $23.6 billion on $84.7 billion in revenue. Despite a $2.3 billion loss in its AI research division, the company saw robust growth in digital advertising and cloud services, with revenue from cloud computing rising 28.8% year-on-year. CEO Sundar Pichai noted that AI initiatives are driving new growth, with over $10 billion in cloud revenue for the first time. However, the company faced a setback after its $23 billion acquisition bid for cybersecurity startup Wiz was rejected. Investor reactions were mixed, with initial gains in stock prices followed by a decline after the earnings report. Overall, Alphabet's performance underscores its stability in digital advertising amid a growing push into AI technologies.