GOOG's surge was predicted correctly again! (How is Meta's financial report?)

GOOG's after-hours earnings report soared 6%. This report of GOOG is a reassurance for AI, which has been hyped for more than a year, because AI can finally bring revenue growth. GOOG's revenue increased by 15%, exceeding the market's expectation of 12%. The application of AI technology has driven the cloud business beyond Wall Street's expectations, helping Google Cloud's revenue grow more rapidly, with a growth rate of more than 30%.

In the past year or so, GOOG has demonstrated a variety of search products supported by generative artificial intelligence technology. These products have opened up more imagination space for users' search experience. Now the monthly search request volume of AI overviews has reached nearly 20 billion times, and GOOG's profit margin has increased to 32% driven by AI, which is a true demonstration of what an elephant dance is.

The reason why GOOG's profit margin and revenue exceeded expectations this time is actually as predicted in my post. AI has reduced the cost of advertising production and greatly boosted advertisers' willingness to place ads, especially ads on YouTube, which greatly exceeded market expectations this quarter.

Similarly, I think META's financial report after the market on the 30th is basically a sure thing. If AI makes advertising production costs decline, it should be a greater boost to META.

META mentioned in its last earnings call that artificial intelligence improves the efficiency of advertising distribution. "Ultimately, our advertising system can predict who will be interested better than advertisers themselves." Management also pointed out that providing AI content creation for advertisers is the next step for Meta to provide value propositions to enterprises. This service is expected to be launched gradually, but investors can expect that this service will gradually affect earnings growth in the short and medium term, and may have a positive impact on growth in the next quarter.