Alphabet (GOOG, GOOGL) shares climb higher after the Google parent company reported third quarter results that beat Wall Street’s expectations on the top and bottom lines adding confidence that the company’s artificial intelligence investments are paying off. Harvest Portfolio Management CIO and Wall Street Beats partner Paul Meeks joins Seana Smith and Brad Smith to break down the results.
Meeks tells Yahoo Finance while he was “favorable” on the overall results, he was “disappointed in year-to-year revenue growth in digital ad sales of only 10%,” but “Google Cloud absolutely knocked it out of the park, growing 35% year-to-year.”
The portfolio manager says that results from other cloud hyperscalers, namely Amazon (AMZN) Web Services, Microsoft (MSFT) Azure, and Oracle (ORCL) Cloud infrastructure, may show that Google Cloud took market share.
Alphabet’s new CFO Anat Ashkenazi emphasized cutting costs as a key priority, especially as the company continues to invest in AI. Meeks says, “You want to have a CFO spending on the right things but not spending foolishly. So that comment that she made was right out of central casting.”
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This post was written by Naomi Buchanan.