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Alphabet shares fell the most in a year on Wednesday after revenue in the company's Google Cloud unit trailed analyst estimates. Its cloud miss was a stark contrast to Microsoft's earnings, which showed accelerating growth in the company's Intelligent Cloud business. Google posted cloud revenue of $8.41 billion, compared to Street Account estimates of $8.64 billion. "The disappointment at Google Cloud contrasted with better-than-expected Azure growth at Microsoft," UBS analysts said. Jefferies analysts noted Google Cloud grew 22%, slower than the 28% growth the company posted in the second quarter.
Persons: It's, Ruth Porat, MSFT, Jefferies, Jennifer Elias, Michael Bloom Organizations: Google, Microsoft, UBS, CNBC
Startup shutdowns will continue at an elevated pace for the next 2 to 3 quarters, according to Peter Walker, head of insights at Carta. There's one big caveat to these concernsThe generative AI boom is firing up demand for AI cloud services. And they're using some of that new money to spend on AI cloud services. The company's cloud growth was healthy in the third quarter, helped by demand for new AI services. The company has been rolling out a slew of AI cloud offerings lately.
Persons: It's, , Carta, Peter Walker, Bernstein, Ruth Porat, Amy Hood, they're, we'll Organizations: Service, Carta, Services, Google, Amazon, Microsoft
Alphabet to report third-quarter earnings after the bell
  + stars: | 2023-10-24 | by ( Jennifer Elias | ) www.cnbc.com   time to read: +3 min
Alphabet is set to report third-quarter earnings after the bell Tuesday. During the third quarter, Google made focused layoffs in various business organizations within the company. In the latest quarter, Google reshuffled its smart assistant that included layoffs as part of an effort to "supercharge" products with AI. Earlier this month, product managers and designers for Google's ChatGPT competitor Bard were reportedly skeptical about the tool's helpfulness. Along with the changes in its business, Google has seen a dramatic shake-up in its upper ranks.
Persons: StreetAccount, it's, Sergey Brin, Google's, hyping, Bard, Ruth Porat, CNBC she'll, Eddy, Apple's, iPhones Organizations: LSEG, Google, TikTok, CNBC, Department of Justice Locations: Zurich, Switzerland
Morgan Stanley CEO James Gorman plans to retire by May 2024. "Cross-pollinating key leaders across our major businesses further knits the Morgan Stanley culture," Gorman wrote in a memo at the time. Morgan Stanley, which was the lead underwriter, had to step in to prop up the stock. In 2010, Morgan Stanley was picked as one of two lead underwriters — the other being JPMorgan — for the IPO of General Motors. With Morgan Stanley at the top of its game, breaking up this well-oiled team could be disastrous.
Persons: Morgan Stanley, James Gorman, Ted Pick, Andy Saperstein, Dan Simkowitz, He's, Simkowitz, Eaton Vance, Pick, Morgan, Getty, Dan, doesn't, Gorman, Morgan Stanley's, Saperstein, executive's protégé, Andy, Alex, Brown, Ted, she'd, Simkowitz's, Dean Witter Reynolds, Eaton, Calvert, Ruth Porat, Bob Scully, Fannie Mae, Freddie Mac, Will Dotson, Dan Akerson, TIMOTHY A, CLARY, Erik Gordon, Dodd, Frank, David Bieri, Gonzalo Marroquin, Patrick McMullan, Paul Taubman, Colm Kelleher, coheads, John Mack, Phil Purcell, Hayley Cuccinello Organizations: Disney, Harvard, McKinsey, Columbia Business School, Maccabiah Games, Team USA, Maccabi USA, Trenton Almgren, Davis, Lucent, Verizon, Mesa West Capital, JPMorgan, Calvert Research, Management, Facebook, Massachusetts Securities Division, Treasury, JPMorgan —, General Motors, Government Motors, General, New York Stock Exchange, Getty, University of Michigan's Ross School of Business, Citigroup, Virginia Tech, US Securities and Exchange Commission, United States Attorney's Office, Southern, of Locations: Bloomington , Indiana, Trenton, New York, Tokyo and Hong Kong, Boston, Washington, Switzerland, of New York, hcuccinello@insider.com
In this article GOOGL Follow your favorite stocks CREATE FREE ACCOUNTGoogle has opened its first west coast visitor Experience" center which is located by its Mountain View headquarters. Google's new Mountain View "Visitor Experience" center features a Google store. It also includes a cafe and retail Google store, which comes two years after the company opened its first public Google retail store in New York's Chelsea neighborhood. Google's new visitor center feature a space where a community group or nonprofit can request to reserve the space for meetings or events. Google's new visitor experience includes an outdoor event space for the public.
Persons: Mark Wickens, We've, Scott Foster, Ruth Porat, Michelle Kaufmann Organizations: Google, Mark Wickens Google, CNBC, Facebook Locations: Mountain View, Calif, New York's Chelsea, Valley, Menlo, San Jose
Alphabet moonshots are ready for launch
  + stars: | 2023-08-29 | by ( Anita Ramaswamy | ) www.reuters.com   time to read: +4 min
Alphabet logo and AI Artificial Intelligence words are seen in this illustration taken, May 4, 2023. REUTERS/Dado Ruvic/Illustration Acquire Licensing RightsNEW YORK, Aug 29 (Reuters Breakingviews) - Alphabet (GOOGL.O) is poised to welcome the autumn harvest. Verily boss Stephen Gillett told employees this month that it will cut its ties to several of Alphabet’s services next year. Such a financial services business strays from Alphabet’s wheelhouse, and with artificial intelligence demanding fresh attention, it’s wise to be prudent about capital allocation. Waymo, the autonomous vehicle technology business, secured a vote of approval this month from San Francisco to operate driverless rideshares in the city.
Persons: Dado Ruvic, Ruth Porat, Morgan Stanley, , Stephen Gillett, wheelhouse, Chris Hohn’s, Ford, Porat, Verily, Jeffrey Goldfarb, Aditya Sriwatsav Organizations: REUTERS, Reuters, Life Sciences, Wall Street Journal, Temasek, TCI Fund Investments, Google, Sciences, Wall, Thomson Locations: San Francisco
Jeff Kowalsky | Bloomberg | Getty ImagesA string of Google executives have changed their roles in the span of several months, in a shift that has sidelined many of company's remaining old guard. The changes encompass high-profile executives such as CFO Ruth Porat, YouTube CEO Susan Wojcicki, and employee No. Some say they have left their roles for a new challenge and others have left to seek opportunities in AI. While she'll still be in an advisory role at Google, she said, she wanted to "start a new chapter." Google's AI head, Jeff Dean, who's been at Google since 1999, became a chief scientist as part of the change.
Persons: Ruth Porat, Jeff Kowalsky, Susan Wojcicki, Urs Hölzle, Susan Wojcicki —, Sergey Brin, Larry Page, she'll, Robert Kyncl, David Lawee, Hölzle, Morgan Stanley, Porat, Courtenay Mencini, who've, it's, OpenAI, Sundar Pichai, Google execs, Prabhakar Raghavan, HJ Kim, Geoffrey Hinton, Demis, James Manyika, Jeff Dean, who's, It's Organizations: Inc, Michigan Central Station, Bloomberg, Getty, Google, YouTube, Warner Music Group, CapitalG, CNBC, New York Times, McKinsey, Google Research Locations: Detroit , Michigan, Silicon Valley
Google said in May that, starting in December, it would begin purging inactive accounts, a warning sign of sorts to people who use multiple logins. "I'm of the mind that email subject lines should be explicitly clear, especially if a consequence is attached to a customer's inaction," she wrote. Users commonly maintain multiple accounts, allowing them to use different email addresses for different purposes, and to store online photos and documents in separate places. But for Google, storage space on free accounts is a cost. The new policy doesn't apply to schools or businesses using Google accounts.
Persons: Ruth Porat, Sabrina Meherally, Meherally, aren't Organizations: Economic, Google, LinkedIn, Twitter Locations: Davos, Switzerland
CFOs are stepping into a rapidly revolving door
  + stars: | 2023-08-14 | by ( Jennifer Saba | ) www.reuters.com   time to read: +3 min
NEW YORK, Aug 14 (Reuters Breakingviews) - Chief financial officers are stepping into an increasingly rapidly revolving door. loadingIn the first half of this year, 103 of the top 1,000 companies ranked by Fortune lost their CFO, according to executive search firm Heidrick & Struggles. CFOs are grappling with rising inflation and interest rates – in some cases, for the first time in their careers. High CFO turnover looks far from transitory. Follow @jennifersaba on TwitterCONTEXT NEWSTesla said on Aug. 7 that its Chief Financial Officer Zachary Kirkhorn was stepping down.
Persons: Elon Musk, Zachary Kirkhorn, Francois, Xavier Roger, Anna Manz, Fortune, Refinitiv, Ruth Porat, Morgan Stanley, Mike Cavanagh, NBCUniversal, Mike Lenz, Unilever’s, Graeme Pitkethly, Walt Disney’s, Christine McCarthy, James Kehoe, Crist Kolder, Tesla, Vaibhav Taneja, Kirkhorn, Peter Thal Larsen, Sharon Lam, Aditya Sriwatsav Organizations: Reuters, Finance, Walgreens Boots Alliance, London Stock Exchange, Reuters Graphics Reuters, Comcast, Walgreens, CFOs, Thomson Locations: Swiss
Shares of Alphabet's stock jumped 10% this week after the company reported second quarter earnings that showed growth despite a tough ad market. Among growth, revenue rose 7% to $74.6 billion from $69.7 billion in the year-earlier period. Google's ad revenue only increased 3.3% from a year earlier, but that's an improvement from the first quarter, when ad revenue fell. Google's YouTube and Cloud units also showed revenue growth despite competition. "We believe this bodes well for the broader online advertising environment," Citi analysts wrote in a note about Google's earnings.
Persons: Snap's, Bernstein, Ruth Porat, she's Organizations: Google, YouTube, Microsoft, Citi Locations: OpenAI
July 25 (Reuters) - Artificial intelligence is expected to pay off big for tech giants including Microsoft (MSFT.O) and Alphabet (GOOGL.O) someday. Microsoft is bearing AI costs in two ways, analysts said: to power its own products such as its forthcoming $30-a-month Copilot AI assistant, and to serve companies wanting to use its Azure cloud computing services to create AI products. "They're buying a bunch of H100s," said Ben Bajarin, chief executive and principal analyst of Creative Strategies, referring to Nvidia's flagship chips for AI. Microsoft may be "aggressively buying Nvidia chips, given Microsoft does not have its own silicon as an alternative," said Atlantic Equities analyst James Cordwell. "The message on inflection point was the same," from Microsoft and Google, said Gene Munster, managing partner at Deepwater Asset Management, "but the difference was Microsoft investors wanted to see more."
Persons: Ben Bajarin, Ruth Porat, Scott Kessler, James Cordwell, Porat, Gene Munster, Stephen Nellis, Akash Sriram, Anna Tong, Max Cherney, Yuvraj Malik, Greg Bensinger, Sayantani Ghosh, Richard Chang Organizations: Microsoft, Nvidia Corp, Creative, Google, Deepwater Asset Management, Thomson Locations: Atlantic, San Francisco, Bengaluru, New York
Alphabet — The Google parent popped more than 6% after topping Wall Street's second-quarter earnings expectations, fueled by growth in its cloud-computing segment. Microsoft, however, did beat Wall Street's estimates, reporting earnings of $2.69 per share on $56.19 billion in revenue. Snap topped second-quarter expectations, reporting a narrower-than-expected loss of 2 cent a share on $1.07 billion in revenue. Wells Fargo also said that its board approved a previously announced dividend hike to 35 cents from 30 cents per share. The company topped earnings but fell short on revenue expectations, reporting adjusted earnings per share of 63 cents on $29.92 billion in revenue.
Persons: Ruth Porat, Refinitiv, Wells Fargo, popper, , Sarah Min, Yun Li, Hakyung Kim, Jesse Pound Organizations: Google, Microsoft, Boeing, Texas, — Texas, Teladoc Health, Dish, Bloomberg News, Fisher, Pacific Locations: Mountain View , California, Banc, California
Alphabet CFO Ruth Porat to become President and CIO
  + stars: | 2023-07-26 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAlphabet CFO Ruth Porat to become President and CIOCNBC's Deirdre Bosa joins 'TechCheck' to discuss mega-cap tech earnings, tech companies expecting elevated capital expenditure due to AI investment, and Alphabet's c-suite shake-up.
Persons: Ruth Porat, CNBC's Deirdre Bosa
Second-quarter earnings season brought heavyweight technology giants and artificial intelligence frontrunners Alphabet and Microsoft head-to-head in an all-too-familiar matchup. Alphabet shares rose 6% after the company reported better-than-expected quarterly results and 28% year-over-year growth in cloud revenue, while Microsoft lost 4% on disappointing revenue guidance and a delayed AI rollout . GOOGL YTD mountain Alphabet shares in 2023 Both Alphabet and Microsoft have spearheaded the effort, facing off with competing chatbots early in the year. Alphabet Alphabet rolled out its Bard chatbot worldwide during the second quarter, removed a testing waitlist and added a host of new capabilities. Microsoft Despite confidence in Microsoft's long-term capabilities, some investors and analysts seemed disappointed by the seemingly delayed rollout of many of its AI products.
Persons: Bard, Sundar Pichai, Pichai, Ruth Porat, Goldman Sachs, Eric Sheridan, Amy Hood, Karl Keirstead, Satya Nadella, — CNBC's Michael Bloom Organizations: Microsoft, Wall, UBS
Sundar Pichai, chief executive officer at Google LLC, speaks during the Google Cloud Next '19 event in San Francisco, California, U.S., on Tuesday, April 9, 2019. Shares of Alphabet rose nearly 5.5% at the start of trading Wednesday, driven by stronger-than-expected second-quarter earnings and marked year-over-year growth in cloud computing revenue. But it was strong growth in cloud computing that stood out the most, with the company reporting $8.03 billion in Google Cloud sales, compared to a StreetAccount consensus of $7.87 billion. Google Cloud competes with Amazon Web Services and Microsoft Azure. The company also announced Wednesday that chief financial officer Ruth Porat would assume a newly created president and chief investment officer position.
Persons: Sundar Pichai, Goldman Sachs, Eric Sheridan, Ruth Porat, Porat, — CNBC's Jennifer Elias Organizations: Google LLC, Google, Revenue, Amazon Web Services, Microsoft, Wall Street Locations: San Francisco , California, U.S
Market Movers rounded up the best reactions from investors and analysts on Alphabet . The pros, including Jim Cramer , discussed the megacap tech company as it jumped 5.8%. Alphabet reported second-quarter earnings Tuesday after the bell. The company beat on the top and bottom lines, posting earnings of $1.44 per share, compared to analysts' estimate of $1.34, adjusted, per share, per Refinitiv. Alphabet also surpassed analysts' revenue estimate by nearly $2 billion.
Persons: Jim Cramer, Ruth Porat Organizations: Google
July 25 (Reuters) - Alphabet's (GOOGL.O) second-quarter profit exceeded Wall Street expectations on Tuesday and the Google parent announced that its long-time CFO Ruth Porat would assume a new role while the company sought a new finance chief. Porat, hired in 2015, is one of Silicon Valley's most prominent female executives and oversaw tremendous growth at Alphabet. Google Cloud, which is among the biggest cloud service providers, is expected to benefit from growth driven by strong adoption of artificial intelligence tools. The company reported net profit of $1.44 per share for the April-June period, compared with estimates of $1.34 per share. Revenue for the quarter stood at $74.6 billion, compared with estimates of $72.82 billion, according to Refinitiv data.
Persons: Ruth Porat, Akash Sriram, Arun Koyyur, Matthew Lewis Organizations: Google, Meta, Revenue, Thomson Locations: Bengaluru
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAlphabet CFO Ruth Porat to take on new role as chief investment officerCNBC's Deirdre Bosa joins 'Closing Bell Overtime' to talk Alphabet's CFO Ruth Perot announcing she is taking on a new role of Chief Investment Officer.
Persons: Ruth Porat, CNBC's Deirdre Bosa, Ruth Perot
The company posted earnings of $1.44 per share on $74.6 billion of revenue. Analysts called for earnings of $1.34 per share, adjusted, and revenue of $72.82 billion, per Refinitiv. Still, the company posted earnings of $2.69 per share, compared to the $2.55 per share anticipated by analysts, per Refinitiv. Wells Fargo — Shares of the bank jumped 3% in extended trading after Wells Fargo announced a $30 billion share buyback program. Teladoc said it lost 40 cents per share in its second quarter, beating analysts' estimates for a 41 cent loss per share, per Refinitiv.
Persons: Ruth Porat, Wells, Robert Half —, Refinitiv, Teladoc Organizations: Google, Revenue, Microsoft, Texas, — Texas, FactSet . Texas, NASA, Management Locations: Mountain View , California, United States
Bottom line This was a very strong second quarter from Alphabet. It was also the first quarter in a while during which revenue growth outpaced that of expenses. That strategy should support both revenue growth and profit margins going forward. We think shares can edge higher over time thanks to management finally getting cost growth below revenue growth. At YouTube, management called out stabilization of spending by advertisers.
Persons: Jim Cramer, , Ruth Porat, Jim Cramer's, Jim, Sundar Pichai, Anna Moneymaker Organizations: U.S, NVIDIA, Nvidia, U.S . Department, DOJ, Google Networks, Google, YouTube, CNBC, Americas, U.S . Chamber, Commerce, Getty Locations: Los Angeles , California
Ruth Porat, Alphabet CFO, at the WEF in Davos, Switzerland on May 23rd, 2022. Ruth Porat will step down as Alphabet 's chief financial officer and take a new role as president and chief investment officer, the company announced on Tuesday. She took over as CFO for Google in 2015 and oversaw the transition into the company's current Alphabet structure. She will continue as CFO until Alphabet selects a replacement, and will continue to report to CEO Sundar Pichai, the company said. Before joining Google, Porat was an executive at Morgan Stanley.
Persons: Ruth Porat, Sundar Pichai, Ruth, Porat, Morgan Stanley Organizations: Google Locations: Davos, Switzerland
“This is our seventh year as an A.I.-first company, and we intuitively know how to incorporate A.I. “These advances provide an opportunity to reimagine many of our products, including our most important product: search.”Philipp Schindler, Google’s chief business officer, said in the earnings call that YouTube’s quarterly sales gains reflected greater stability in advertiser spending. competition from the ChatGPT chatbot and Microsoft’s Bing search engine, Google’s search engine has remained a central gateway to the web for billions of users. That has helped the company convince more advertisers that its sites are still a reliable way to reach consumers. Google also announced on Tuesday that Ruth Porat, its longest-serving chief financial officer, would assume the newly created role of president and chief investment officer on Sept. 1.
Persons: Mr, Pichai, ” Philipp Schindler, Google’s, Microsoft’s Bing, Ruth Porat Organizations: Google, Microsoft
Google CEO Sundar Pichai speaks at a panel at the CEO Summit of the Americas hosted by the U.S. Chamber of Commerce on June 09, 2022 in Los Angeles, California. (Photo by Anna Moneymaker/Getty Images)Google CEO Sundar Pichai received a hefty pay raise last year, making him one of the highest-paid CEOs in America. SEC filings showed Pichai was paid a total of $226 million last year, mostly through $218 million in stock awards. Twilio CEO Jeff Lawson said he'd also be taking a pay cut amid a 17% workforce reduction. At an all-hands meeting, employees asked Pichai why executives are getting pay cuts if he's taking responsibility.
The result is slowing revenue growth at the cloud divisions run by Amazon , Microsoft and Google . AWS saw deceleration in the third and fourth quarters, and last quarter Microsoft finance chief Amy Hood spooked analysts with comments about a slowdown in December that she expected to persist. Amazon CEO Andy Jassy said "what we're seeing is enterprises continuing to be cautious in their spending in this uncertain time." At Google, cloud growth slowed to 28% from a year earlier in the first quarter from 32% in the prior period. WATCH: Ongoing deceleration in IT spending not reflected in tech earnings
Google Cloud CEO Thomas Kurian, right, arrives on stage as Alphabet CEO Sundar Pichai exits during the Google Cloud Next event in San Francisco on April 9, 2019. Earlier this week, Alphabet said Google's cloud unit generated $191 million in operating profit, after losing a total of $4 billion in 2021 and 2022. Under Kurian's predecessor, VMware co-founder Diane Greene, critics said Google's cloud business hadn't matured enough to handle enterprises even as it was investing heavily to do so. The cloud division includes the Google Cloud Platform, which competes with Amazon Web Services and Microsoft Azure, and the Google Workspace productivity software bundle that goes head-to-head with Microsoft Office. Google Cloud technology chief Will Grannis said Kurian's commitment to improving the division's offerings was evident right away.
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