Alphabet stock: Price jump after figures - AI bet pays off

Strong figures: Google parent company convinces with AI

The Alphabet share jumped sharply after the presentation of the quarterly figures. Reason: The Google parent company was able to increase sales and profit significantly despite the weak economic environment and thus exceeded analysts' expectations.

In the last quarter, sales rose by 10 percent year-on-year to $76.05 billion. The profit even increased by 23 percent to 17.97 billion US dollars. The decisive factor for the strong development was once again the advertising business at Google, which provides the lion's share of Alphabet's sales. The cloud division also contributed to growth. Google's newer business areas, on the other hand, remained loss-making, but are developing according to plan.

Above all, however, the investors were impressed by the figures for the artificial intelligence department. The AI ​​division, which is located in the "Other Bets" segment, recorded sales of $243 million for the first time. In addition, the loss could be significantly reduced from 1.98 billion dollars to 1.05 billion dollars.

With the AI ​​offensive, Alphabet is on the right track. The ChatGPT hype has impressively shown the enormous potential of AI. Google does not want to miss out on this development and is investing heavily in order to continue to play a leading role in the future AI boom.

Conclusion: AI is transforming Alphabet

The figures show that Alphabet is in excellent shape: despite the economic headwinds, the company was able to expand its market position and present strong results. In particular, the AI ​​focus seems to be bearing fruit: although the division is still not profitable, it is continuously reducing its losses and expects to finally be able to write black numbers in the medium term.

Overall, Alphabet is well-positioned to continue to benefit from the megatrend of digitization and to further expand its market leadership in the AI ​​sector. The share is therefore a worthwhile investment for growth-oriented investors.

Disclaimer: The information in this article is for informational purposes only and should not be construed as financial advice. Investing involves risk, including the potential loss of principal.