Alphabet Q2 earnings soar as Anthropic stake explodes in value

Alphabet earnings rise nearly 300% YoY on $98 billion increase in equity portfolio value.
Google Cloud revenue spikes 82% YoY to $24.5 billion.
Search revenue rises 17% YoY, YouTube ads gain 13% YoY.

Clay Webster FXStreet

Alphabet (GOOG, GOOGL) reported $9.11 in earnings per share on Wednesday evening, a whopping $6.11 ahead of the Wall Street consensus. But the share price moved little after an initial period of volatility (with GOOGL spiking to $353 and falling below $332 before leveling off near the regular session's close at $342) as the lion's share of the increase owed itself to a $98 billion increase in the value of Alphabet's equity portfolio, which most analysts believe is largely tied its approximate 14% stake in Anthropic and was already priced in.

Revenue in the second quarter rose 24% YoY to $119.8 billion and beat the Wall Street consensus by over $2.8 billion.

“Our AI investments are redefining what’s possible across every part of our business," said CEO Sundar Pichai. "Q2 was an amazing quarter, [...] driven by demand for AI infrastructure and AI solutions. It’s great to see wide adoption of Gemini Enterprise, with nearly 90% of the Fortune 100 using it."

Google Cloud had an immensely successful quarter as its annual revenue growth rate rose from 63% in Q1 to 82% in Q2 at $24.8 billion.

Google Services revenues increased 15% to $94.5 billion, led by 17% growth in Google Search & other, 15% in Google subscriptions, platforms, and devices, and 13% in YouTube ads.

Google's operating margin rose two percentage points to 34% in Q2.

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY bounces off one-month low; climbs to 157.00 amid reviving USD demand

USD/JPY rebounds from the 156.00 neighborhood, or a one-month low touched during Friday’s Asian session, with bulls looking to extend momentum beyond 157.00 amid the emergence of some US Dollar buying. Meanwhile, Japan's National CPI rose to a nine-month peak and reaffirmed BoJ rate-hike bets, which could support the Japanese Yen and cap gains for the currency pair.

Gold treads water around $4,000

Gold prices maintain its offered stance in place at the end of the week, hovering around the key $4,000 threshold per troy ounce. The persistent selling bias in the precious metal comes amid decent gains in the US Dollar and an acceptable rebound in US Treasury yields across the curve, all alongside further upside traction in crude oil prices.

Crypto Today: Bitcoin holds the 50-day EMA as Ethereum and XRP face structural resistance

Bitcoin gradually ticks up on Friday, trading above $81,000. The Crypto King has recently defended structural support near $80,000, reinforcing the prevailing bullish outlook. Ethereum similarly edges higher above $2,400, while Ripple trades above $1.32 after testing support around $1.30.

The French bond panic is overdone. Here's what the market is misreading

France's 10-year government bond yield has climbed above 5%, reigniting fears of a sovereign debt crisis in the Eurozone. With public debt exceeding €3.5 trillion, persistent budget deficits and a fragmented political landscape, investors are increasingly questioning the French government's ability to stabilize its finances.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.