Alphabet Inc., the parent company of Google, is scheduled to release its first-quarter earnings report for the fiscal year 2024 after the US stock market closes today. As the fourth-largest company in terms of market capitalization, Alphabet will be closely watched as it competes with tech giants like Microsoft and Nvidia in the artificial intelligence (AI) arena, which is expected to dominate the tech sector in the 2024 fiscal year.
According to predictions from Wall Street analysts, Alphabet's revenue is expected to increase by 13% compared to the previous year's first quarter, reaching $78.69 billion. Net profit is also anticipated to rise by 26% from the same period last year, reaching $18.89 billion. Earnings per share are projected to be $1.51, compared to $1.17 in the same period of 2023.
However, analysts are paying close attention to several factors that could negatively impact the results. The Gemini image generation scandal and its effect on the company's performance are factors to consider. Layoffs and relocations as part of restructuring efforts, as well as protests related to Alphabet's ties to Israel, may further influence the company's quarterly report.
The market is particularly interested in Alphabet's approach to integrating generative artificial intelligence (AI) into its search and advertising offerings, with advertising revenue projected to be over 70% of the company's total revenue, according to Morningstar. Additionally, there is keen attention on the growth of the company's cloud business, particularly after it experienced a significant 25.7% increase in the last quarter of 2023. IG Markets expects the cloud segment to drive growth by adding 28% in revenue on a yearly basis.
Earlier this month, the fourth-ranked firm in market capitalization's cloud computing summit hyped investors regarding the giant's AI efforts compared to tech rivals Microsoft and Amazon.