Results for Alphabet’s GOOGL second quarter of 2022, which are due on July 26, are likely to show benefits from its expanding cloud service offerings. The company’s division for cloud services, Google Cloud, has emerged as the primary driver of its commercial expansion.
Google Workspace and Google Cloud Platform are two of Alphabet’s cloud services, and both are steadily gaining popularity in the burgeoning cloud computing industry.
It has been highly beneficial that Google is increasing its efforts in infrastructure, security, data management, analytics, and AI. Alphabet (NASDAQ:GOOGL) has consistently had significant revenue growth thanks to the Google Cloud business, which generates income from fees charged for the services of Google Cloud Platform and Google Workspace collaboration capabilities.
In the first quarter of 2022, the segment generated $5.8 billion in revenue. The amount represented 8.6% of total revenues and showed a growth of 43.8 % from one year to the next. Zacks Consensus Estimate for Google Cloud’s revenues for the second quarter of 2022 is $6.4 billion, indicating a growth of 38.6% from the reported amount for the corresponding quarter of the previous year.
Considerable Factors
Google is anticipated to have gained market share in the fiercely competitive cloud market thanks to its increased efforts to grow its cloud service offerings, data centers, availability zones, and countries. It is likely that the corporation benefited from the opening of an area in Paris. Its robust capabilities in real-time data, analytics, and AI, together with its open and accessible cloud architecture, are anticipated to have contributed to its success in attracting clients.
The business launched the Cloud SQL for SQL Server, which helps with Cloud SQL monitoring with SQL Server database auditing. Google Public Sector was launched by GOOGL in the second quarter, which really is probably what helped the company gain traction with American public sector organizations.
The business also unveiled Climate Insights powered by Google Earth Engine. This Google Cloud application blends geospatial analysis with AI and machine learning capabilities. The public sector organizations engaged in climate research are likely to have had a better experience as a result. All of these initiatives are probably going to have made a significant difference in how Google Cloud performed in the second quarter. The area indicated is also anticipated to continue to gain from the hybrid work model’s expanding popularity on a global scale.
Rank & Stocks to Consider
Here are some stocks for interested investors to consider based on research conducted by a leading investment research firm that is focused on stock research, analysis, and recommendations, Zacks Investment Research.
According to Zacks Rank, Alphabet (NASDAQ:GOOGL) currently stays at the third position (Hold). Aspen Technology AZPN, Asure Software ASUR, and Agilent Technologies A, each sporting 2nd position on Zacks Rank (Buy) at the moment, are some better-ranked companies that investors are interested in the more significant Zacks Computer & Technology sector might want to take into account.
In the year thus far, Aspen Technology has generated a return of 15.1 %. The predicted long-term profit growth rate for AZPN is 16.3 %.
Asure Software has experienced a loss of 29.7% so far this year. The predicted long-term profit growth rate for ASUR is 14%.
Agilent Technologies has experienced a loss of 27.9% so far this year. A’s long-term revenue growth rate is now anticipated to be 10%.
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