Alphabet (NASDAQ:GOOGL) delivered impressive second-quarter profits that surpassed Wall Street expectations, according to an announcement made on Tuesday. Alongside this news, Alphabet revealed a significant leadership change as the company’s long-time CFO, Ruth Porat, prepares to take on a new role while they search for a new finance chief.
Ruth Porat, an influential figure in Silicon Valley, joined Alphabet in 2015, overseeing remarkable growth within the company during her tenure. Effective from September 1st, Porat will assume the role of Chief Investment Officer and President.
Before joining Alphabet, Porat held the position of finance chief at Morgan Stanley (NYSE:MS). In her new capacity, she will be responsible for overseeing Alphabet’s Other Bets portfolio, which encompasses ventures involving riskier hardware and services. Additionally, she will play a key role in managing the company’s global investments.
Alphabet’s Financial Performance
The boost in Alphabet’s financial performance was driven by robust demand for its cloud services and a notable rebound in advertising. As a result of these positive outcomes, the company’s shares soared more than 6% in after-market trading. In contrast, rival Microsoft’s shares (NASDAQ:MSFT) experienced a minor dip after it too released its quarterly results on the same day.
The recent economic climate saw advertisers exercising caution and holding back their spending on untested platforms. This trend proved beneficial for both Alphabet, whose revenue relies heavily on advertisers, and Facebook’s parent company, Meta Platforms (NASDAQ:META).
Alphabet’s Google Cloud, a major player in the cloud services industry, experienced a notable 28% revenue increase, reaching $8.1 billion for the quarter, surpassing expectations of $7.75 billion. This growth rate remained consistent with the first quarter. Furthermore, ad sales for Google’s YouTube video service unit rose by 4.4%, generating $7.67 billion.
In the April-June period, Alphabet reported a net profit of $1.44 per share, exceeding the estimated $1.34 per share. The total revenue for the quarter amounted to $74.6 billion, surpassing the anticipated $72.82 billion, as reported by Refinitiv data.
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Author Faith Yakubu 
