Alphabet (Google) reported strong earnings and revenue growth for the third quarter of 2023, driven by its advertising and cloud computing businesses.

Total revenue for the quarter was $74.6 billion, up 7% from the same period last year. Earnings per share were $1.21, up 19% from the same period last year.

Google’s advertising business, which accounts for the majority of the company’s revenue, grew 6% year-over-year to $69.1 billion. This growth was driven by strong demand for search and video advertising.

Google’s cloud computing business, Google Cloud Platform (GCP), grew 28% year-over-year to $8.1 billion. GCP is now the third-largest cloud computing platform in the world, behind Amazon Web Services and Microsoft Azure.

Other highlights from Alphabet’s earnings report include:

YouTube advertising revenue grew 4%.
Google Play revenue grew 11%.
Hardware revenue grew 17%.
Other Bets revenue grew 13%.
Alphabet’s CEO, Sundar Pichai, attributed the company’s strong performance to its “focus on innovation and growth.” He also highlighted Alphabet’s investments in new areas, such as artificial intelligence and machine learning.

What do Alphabet’s earnings results mean for investors?

Alphabet’s earnings results are good news for investors. The company’s advertising and cloud computing businesses are both growing rapidly, and the company is investing in new areas that could drive future growth.

Alphabet’s stock price has fallen by about 20% year-to-date, but the company’s earnings results suggest that the stock is undervalued. Investors who believe in Alphabet’s long-term growth prospects may want to consider buying shares of the stock.

Here are some additional thoughts on Alphabet’s earnings results:

Alphabet’s advertising business is still growing, despite the economic slowdown. This suggests that Google’s advertising platform is still the most effective way for businesses to reach their target audiences.
Alphabet’s cloud computing business is growing rapidly, and it is now the third-largest cloud computing platform in the world. This suggests that Google is well-positioned to benefit from the continued growth of the cloud computing market.
Alphabet is investing in new areas, such as artificial intelligence and machine learning. These investments could help Google to maintain its leadership position in the technology industry.
Overall, Alphabet’s earnings results are positive for investors. The company’s advertising and cloud computing businesses are both growing rapidly, and the company is investing in new areas that could drive future growth.