Shares of Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) surged in after-hours trading after the company reported earnings for its second quarter of Fiscal Year 2023. Earnings per share came in at $1.44, which beat analysts’ consensus estimate of $1.34 per share.
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Revenue climbed 7% to $74.6B, beating expectations of $72.82 billion, with Google Search and other income rising 4.8% to $42.6B and YouTube ads increasing 4.4% to $7.67B. Meanwhile, Google Network ads dipped slightly to $7.85B from the previous $8.26B. Google’s other revenue sectors saw substantial growth, with a 24% leap to $8.14B and Google Cloud growing 28% to $8.03B.
Operating income exceeded expectations, growing over 12% to $21.8B, largely from Google Services. Google Cloud began generating profits, and losses from Google’s “Other Bets” decreased to $813M. Lastly, workforce reductions and office space optimization led to charges of $2B and $633M, respectively.
Overall, Wall Street has a consensus price target of $131.33 on GOOG stock, implying almost 7% upside potential, as indicated by the graphic above.
