BREAKINGVIEWS-Alphabet's AI fortunes are still up in the air

Alphabet Inc. Class A

Alphabet Inc. Class A

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The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

By Sebastian Pellejero

NEW YORK, July 22 (Reuters Breakingviews) - The Google parent’s cloud business is booming in the chatbot era, as $25 bln in quarterly sales and a 36% operating margin trounce forecasts. Yet cooling search growth shows that its crown jewel might face new pressure. The company’s valuation looks rich given the threat.

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CONTEXT NEWS

Google parent Alphabet reported second-quarter earnings after the bell on July 22, beating analysts’ expectations on both sales and earnings per share, according to LSEG data.


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