In the second quarter, Alphabet reported substantial growth, with total revenue rising 14% to $96.4 billion and net profit increasing to $28.2 billion. Key factors driving this growth included significant contributions from Google Cloud, YouTube, and the core search business. However, revenue from the Google Network, which serves web publishers and app developers, slightly declined by about $100,000. Investors expressed concerns over a potential revenue slowdown linked to declining traffic and earnings for web publishers, despite assurances from Google management regarding the monetization of its new AI search formats being on par with traditional methods.
Google's total revenue grew by 14% to $96.4 billion in the quarter, with net profit increasing from $23.6 billion to $28.2 billion. This growth was aided by performance in Google Cloud, YouTube, and the core search business, each adding substantial amounts to their year-over-year totals.
Despite the strong performance, the Google Network, which encompasses revenue from web publishers and app developers using Google's ad tech, experienced a slight downturn, decreasing by approximately $100,000.
Concerns about a potential slowdown in Google's revenue arose from reports of declining traffic and earnings for web publishers, raising questions about the sustainability of Google's growth amidst these challenges.
Philipp Schindler, Chief Business Officer, noted that Google maintains that monetization rates for their generative AI search products are comparable to traditional search, suggesting a solid foundation for future advertising innovations.
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