Alphabet Inc. GOOG GOOGL CEO Sundar Pichai has projected that the company’s YouTube and Cloud businesses will generate a combined revenue of $100 billion by 2024.
What Happened: The forecast was made by Pichai during the first quarter earnings, according to Gene Munster of Deepwater Asset Management, posted on social media platform X on Thursday. This projection suggests a 25% growth rate for each of the next three quarters, despite YouTube’s 21% and 28.4% growth in March.
Munster noted, “Maintaining growth rates around 25% despite larger numbers is a sign Google’s entering a new growth phase.”
Why It Matters: This announcement comes on the heels of Alphabet’s Q1 earnings report, which revealed a 15% year-over-year increase in revenue to $80.539 billion. The company also reported quarterly earnings of $1.89 per share, surpassing analyst estimates.
Earlier in April, Meta Platforms Inc. took a page out of Google’s playbook by opening up its Quest operating system to third-party hardware manufacturers. This move was a result of Meta’s investments in mixed reality, starting with Oculus in 2014 for $2 billion.
Despite facing internal criticism and AI-related challenges, Alphabet has once again secured the top position in the list of “America’s Most Innovative Companies 2024.” This is a testament to the company’s resilience and continued innovation under Pichai’s leadership.
Price Action: Alphabet’s Class C stock rose 11.43% in after-hours trading to $176.23. Similarly, Class A stock rose 11.56% to $174.04, as per data from Benzinga Pro at the time of writing.
Image Via Shutterstock
Engineered by
Benzinga Neuro, Edited by
The GPT-4-based Benzinga Neuro content generation system exploits the
extensive Benzinga Ecosystem, including native data, APIs, and more to
create comprehensive and timely stories for you.
Learn more.
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
