An illuminated Google logo is seen inside an office building in Zurich, Switzerland.
Arnd Wiegmann | Reuters
alphabet It plans to report third-quarter earnings after the call on Tuesday.
Here's what Wall Street expects, based on a survey of analysts at LSEG, formerly known as Refinitiv:
- Profit per share: $1.45
- income: 75.97 billion dollars
Here are some other key numbers that analysts are looking at:
- YouTube ad revenue$7.81 billion is expected, according to StreetAccount
- Google Cloud Revenue: $8.64 billion, according to StreetAccount
- Traffic acquisition costsAccording to StreetAccount: $12.63 billion
Google's parent company is expected to post double-digit revenue growth after four quarters of expansion that have been in the single digits. The company's mainstream advertising weakened last year due to a softening economy and increased competition from TikTok.
In January, Google announced it would cut 12,000 jobs, affecting about 6% of its full-time workforce, and last month the company cut hundreds of positions from its recruiting organization.
In the third quarter, Google made focused layoffs across the company's various business organizations. About 40 to 45 employees in the news division lost their jobs. The company also released more Employees of its self-driving car division Waymo, which recently announced Expanding its driverless ride-sharing service.
While the company continues to resize after years of unbridled growth finally stalled, it's also investing heavily in artificial intelligence.
After releasing OpenAI's ChatGPT chatbot late last year, Google has been scrambling to add generative AI technology to more products and is testing it within basic search. Generative AI, which provides more creative and comprehensive answers to simple text queries, could potentially have a significant impact on Google's search — and advertising — business if it changes how people search for information online.
Last quarter, Google overhauled its smart assistant, which included layoffs, as part of an effort to “reboot” products using artificial intelligence.
Sergey Brin, one of the co-founders of Google, reportedly He had a rare appearance In a recent comprehensive meeting that reinforces the company's AI work. Earlier this month, product managers and designers from Google's ChatGPT competitor Bard According to reports Skeptical of the usefulness of the tool.
Along with the changes to its business, Google has seen a dramatic shake-up in its top ranks. In July, chief financial officer Ruth Porat announced she would step down after eight years in the role to take on a new role as president and chief investment officer. He told CNBC that he will also engage with politicians.
Also in the quarter, the Justice Department began its antitrust lawsuit against Google, alleging that the company perpetuated a feedback loop with restrictive default contracts to maintain its search dominance. Eddie Cue, Apple's senior vice president of services, testified that Google's default search engine on iPhones was the best for users because “there was no real alternative.”
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