Alphabet is poised to deliver its Q4 2022 earnings tomorrow, and analysts are looking to Google Cloud to be the bright spot.
Alphabet, like many in the tech industry, has had a rough few months. The company is facing antitrust action by the US government, new threats to its core business, and a economic downturn that has resulted in its first-ever layoffs.
With the company reporting its earnings tomorrow, analysts are looking to Google Cloud to be one of the driving elements to the company’s performance.
“Alphabet’s fourth-quarter 2022 results, scheduled to be released on Feb 2, are likely to reflect gains from its strengthening cloud service offerings,” writes Zacks.com.
“The Google Cloud segment, which derives revenues from fees collected for Google Cloud Platform services and Google Workspace collaboration tools, has constantly been driving substantial revenue growth for Alphabet,” Zacks continues.
Cloud computing has, in general, weathered the economic downturn better than many other segments of the tech industry. Alphabet’s earnings tomorrow may shed light on just how resilient the cloud industry really is.