Google CEO Sundar Pichai speaks with Emily Chang during the APEC CEO Summit at Moscone Center West in San Francisco on November 16, 2023.
Justin Sullivan | Getty Images News | Getty Images
Google parent Alphabet is set to report its third-quarter earnings on Tuesday after the market closes.
Here’s what analysts expect, according to average ratings compiled by LSEG:
- Earnings per share: $1.85
- Income: 86.30 billion dollars
Wall Street is also looking at some other numbers in the report:
- YouTube ad revenue: $8.89 billion, according to StreetAccount
- Google Cloud Revenue: $10.88 billion, according to StreetAccount
- Traffic Acquisition Costs (TAC): $13.53 billion, according to StreetAccount
Alphabet’s third quarter was filled with external and internal shocks, including at its top ranks and its most important business.
Earlier this month, the company replaced Prabhakar Raghavan, the company’s head of search and advertising since 2018, with Nick Fox, a longtime executive known for his role in the Google Assistant unit. Additionally, the team working on the Gemini app, which includes the company’s direct-to-consumer AI products, will join Google DeepMind under the direction of Demis Hassabis.
The moves come as Google continues to restructure its teams to move faster in the AI arms race, where it faces increased competition from entrants such as OpenAI’s ChatGPT.
During the quarter, the company also faced the advancement of several antitrust lawsuits related to its search and advertising business. In August, the company faced a guilty verdict from a US federal judge who ruled that Google illegally maintained a search monopoly, marking the first antitrust ruling against a tech company in decades.
In early October, the DOJ made recommendations about the business practices of Google’s search engine, indicating that it was considering a potential breakup of the tech giant as an antitrust remedy, specifically regarding the company’s obligation to make “structural” changes. ” in Chrome, Android and Google Play app stores Businesses.
Additionally, the DOJ suggested limiting or prohibiting default agreements and “other revenue-sharing arrangements related to research and research-related products.” This would include Google’s search position agreements with Apple’s iPhone as well as Samsung devices. These are deals that cost the company billions of dollars a year in payments, but position Google as the default search engine in those products.
With the slow legal process, the company is likely still years away from having to make any changes to the business.
In a separate antitrust case in early October, a US judge issued a permanent injunction that will force the company to offer alternatives to its Google Play store for downloading apps to Android phones. However, the judge has since given Google a break on the order.
Google was back in court in September facing off against federal prosecutors for the second time, this time over the DOJ’s antitrust lawsuit against Google’s ad tech business. The closing arguments of the trial will take place on November 25.
Outside of the courts, Google also made several product announcements during the quarter.
In August, the company announced its new Android software update and the latest line of Pixel smartphones that use Google’s Gemini AI assistant. The company doesn’t make much money from its hardware business, but the latest Android features could help Google bring in new revenue through its Gemini AI subscription program.
