Alphabet (GOOGL) topped Wall Street expectations for the second quarter as surging demand for AI services fueled another breakout quarter for Google Cloud.
The company reported $119.8 billion in revenue, ahead of analysts' $116.93 billion estimate.
Google Cloud revenue climbed 82% year-over-year to $24.8 billion from $13.6 billion a year earlier, easily surpassing analysts' forecast of $22.4 billion, which had implied 64% growth.
The firm also reported a 30% increase in operating income as its operating margin expanded to 34%. Meanwhile, capital expenditure rose to $44.9 billion in the second quarter, doubling in a year.
CEO Sundar Pichai said AI investments are driving growth across the company, pointing to strong demand for Google Cloud Platform's AI infrastructure and enterprise AI solutions.
Shares were 0.4% higher following the report at $343 post-market hours, after slipping 1.4% during the session.
Tesla (TSLA) did not buy or sell any bitcoin (BTC) during the second quarter, maintaining its holdings at 11,509 BTC, according to the company's latest earnings release.
The position was worth roughly $825 million at the end of the quarter. Bitcoin currently trades at $65,840.
The company booked a $112 million after-tax impairment loss on its bitcoin holdings under accounting rules that require digital assets to be measured at fair value, with changes in value recognized in net income each reporting period.
Tesla remains one of the largest publicly traded corporate holders of bitcoin. It is currently the 12th largest public holder of the crypto asset with Elon Musk’s other company, SpaceX (SPCX), being in the eighth spot with 18,712 bitcoin on its balance sheet.
Markets are facing a challenging mix of geopolitical tensions, trade uncertainty and corporate earnings, according to Ryan Kirkley, co-founder and CEO of Global Settlement (GSX).
Kirkley said the renewed U.S.-Iran conflict, which has pushed oil prices higher, and President Donald Trump's 50% tariffs on selected Canadian imports are combining to create inflationary pressure that markets may be underestimating. Rather than viewing the developments as separate events, he argued investors should consider their cumulative impact on growth and central bank policy.
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