I know better than anywhere else [Google Q3 financial results summary]

The holding company of Google in the US $Alphabet-A(GOOGL.US)$announced financial results for 23Q3 (fiscal year ending 2023/7/9) on the 25th (Japan time). Due to financial results, the demodulation of internet advertisements has become clear. However, it seems that they are disgusted that sales in the cloud division fell below expectations at 8.41 billion dollars, and stock prices are currentlyA decline of nearly 9%. Concerns grew about the company's position in the market, which is essential for future growth.

Stock prices plummeted temporarily despite an increase in sales and profit
GOOG announced financial results for 23Q3 (fiscal year ending 2023/7/9) after closing, and sales (excluding traffic acquisition costs) exceeded expectations, and profit per share also exceeded expectations.What drove the performance was internet advertising for the main businessthat's it. In the first half of 2023, the demodulation of internet advertisements, which referred to “there is spending control by advertisers,” became clear.

CEO Pichai said, “We have realized innovation utilizing AI in various fields such as search, YouTube, cloud, pixel devices, etc. We continue to focus on making AI more useful for everyone, and there are exciting developments in that, and more is about to happen.”

Internet advertising demodulation is also a new threat due to slow cloud growth and the rise of generative AI
Sales by segmentNet advertising business sales increased 9% from the same period last year to 59.647 billion dollarsThen, what is the rate of increase in salesUp from 3% in the previous quarter. Sales of search-related advertisements that display content linked to internet search results increased 11% from the same period last year. Video sharing service and YouTube advertisements increased by 12%, and the rate of increase in sales was much higher than 4% in the previous quarter.

It aims to develop it into a pillar of business after internet advertisingCloud business sales increased 22% year over year to $8.411 billionThen,It did not meet market expectations. Alphabet President Ruth Polat explained in a media interview that sales in the cloud division were affected by cost reductions from some customers. Affected by this, Alphabet's stock price temporarily fell more than 6% from the closing price on the same day due to overtime trading. Meanwhile, operating profit and loss were in surplus of 266 million dollars (deficit of 440 million dollars in the same period last year), and surpluses were recorded for 3 consecutive quarters.

Google's monopoly search market faces new threats with the rise of generative AI chatbotsI'm doing it. Microsoft and others, which support open AI that developed the interactive AI “ChatGPT (chat GPT),” are challenging Google, which leads the search field, with new technology.

President Polat and Alphabet's Chief Executive Officer Sundar Pichai (CEO) expressed the idea of continuing to search for ways to improve the efficiency of business operations. Mr. Polat stated that “a more moderate pace of increase in the number of employees” will be maintained, and explained “this is to secure room for investment in opportunities such as AI as much as possible.” Mr. Pichai said at the press conference that “we will do everything necessary to secure a world-leading AI model and infrastructure.”

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Source: Alphabet IR Information, Bloomberg, Nihon Keizai Shimbun, MINKABU