On November 16, 2023, Google CEO Sundar Pichai spoke with Emily Chang at the APEC CEO Summit held at Moscone Center West in San Francisco.
Justin Sullivan | Getty Images News | Getty Images
Google Parent letter Third-quarter earnings are scheduled to be released after the market close on Tuesday.
Analysts expected the following, according to an average estimate compiled by London Stock Exchange Group (LSEG):
- Earnings per share: $1.85
- income: $86.3 billion
Wall Street is also paying attention to several other numbers from the report:
- YouTube ad revenue: $8.89 billion, according to StreetAccount
- Google Cloud revenue: $10.88 billion, according to StreetAccount
- Traffic Acquisition Cost (TAC): $13.53 billion, according to StreetAccount
Alphabet’s third quarter has been filled with external and internal restructuring, including at its highest levels and most important businesses.
Earlier this month, the company replaced Prabhakar Raghavan, who has served as the company’s head of search and advertising since 2018, is joined by Nick Fox, a longtime executive known for his role in the Google Assistant division. In addition, the team developing Gemini applications, including the company’s direct-to-consumer AI products, will join Google DeepMind and be led by Demis Hassabis.
The moves come as Google continues to reorganize its team to move faster in the artificial intelligence arms race, where it faces increasing competition from players such as OpenAI’s ChatGPT.
During this quarter, the company also faced progress on the following issues: Some Antitrust litigation related to its search and advertising businesses. In August, the company faced guilty verdict A U.S. federal judge ruled that Google had an illegal monopoly in search, the first antitrust ruling against a technology company in decades.
In early October, the Ministry of Justice made suggestions Google’s search engine business practices suggest it is considering breaking up the tech giant as an antitrust remedy, specifically forcing the company to make “structural” changes to its Chrome, Android and Google Play app store operations.
Additionally, the Justice Department proposed limiting or banning default agreements and “other revenue sharing arrangements related to search and search-related products.” This will include Google’s search ranking protocol Apple’s iPhone and Samsung devices. These deals cost the company billions of dollars A year’s worth of spending, but positioning Google as the default search engine for these products.
With the legal process moving slowly, it could be years before the company is forced to make any changes to its operations.
In another antitrust case in early October, a U.S. judge issued permanent ban This will force the company to provide an alternative to the Google Play Store for downloading apps on Android phones. However, the judge later Granted to Google Suspension of the ban.
Google Back in court in September for a second confrontation with federal prosecutors, this time against the Justice Department antitrust trial Oppose Google’s ad tech business. Closing arguments in the trial will be held on November 25.
Outside of the courts, Google also made a number of product announcements this quarter.
August, company declare Its new Android software update and its latest line of Pixel smartphones utilizing Google’s Gemini AI assistant. The company doesn’t make a lot of money from its hardware business, but the latest Android features could help Google bring in new revenue through its Gemini AI subscription program.
