Alphabet Inc Class C (NASDAQ:GOOG) stock rose 5.36% (As on October 30, 11:16:56 AM UTC-4, Source: Google Finance) after the company reported third-quarter sales that climbed more than analysts expected, helped by robust demand for cloud computing services from companies racing to develop or adopt artificial intelligence. Advertising revenue topped $65.85 billion versus analysts’ expectations of $65.5 billion, up from the year-ago period’s $59.65 billion. The company’s AI portfolio is attracting new customers and leading to larger deals. Cloud revenue came in at $11.4 billion, up 35% from the same period last year, surpassing expectations. Google plans spend roughly $13 billion on capital expenditures for the current quarter. And the company anticipates another increase in AI and data infrastructure spending in 2025. Google Services revenues increased 13% to $76.5 billion, led by strength across Google Search & other, Google subscriptions, platforms, and devices, and YouTube ads.

Moreover, Google is also investing heavily in new forms of power, including nuclear, to handle the future load of AI’s technological progress. Alphabet’s Other Bets, an eclectic collection of nascent businesses including the self-driving car effort Waymo and the life sciences unit Verily, reported $388 million in revenue, up from $297 million in the year-ago quarter. Waymo, which Alphabet has poured money into for more than a decade, has been rapidly expanding the number of rides it offers in cities like San Francisco and Phoenix. The company said last week it had raised $5.6 billion, its largest-ever funding round. The Other Bets division remains unprofitable, losing $1.1 billion in the quarter, but Alphabet has been working to narrow those losses.

GOOG in the third quarter of FY 24 has reported the adjusted earnings per share of $2.12, beating the analysts’ estimates for the adjusted earnings per share of $1.84. The company had reported the adjusted revenue growth of 15 percent to $88.27 billion in the third quarter of FY 24, beating the analysts’ estimates for revenue of $86.44 billion, according to data compiled by Bloomberg. Total operating income increased 34% and operating margin percent expanded by 4.5 percentage points to 32%.  Net income increased 34%

Additionally, the company has announced a cash dividend of $0.20 per share that will be paid on December 16, 2024, to stockholders of record as of December 9, 2024, on each of the company’s Class A, Class B, and Class C shares.