00:00 Speaker a
Alphabet is set to report second quarter results on Wednesday, with analysts generally optimistic on Tech Giant. According to reports tracked by Bloomberg, stocks that shop 63 on the streets have an attractive trend in the alphabet, but I know that the antitrust risk of Mag 7 stock is overhead to discuss this. I got Laura Martin, a senior media and internet analyst from Needham. Laura, I'm happy to meet you at the show as usual. As you know, investor Laura's concern about this, I'm looking at stocks, it's basically flat annually and how AI can confuse searches, how Google's bread and butter. Of course, I'm sure there will be a question from the client about this, Laura. What do you say to them?
02:13 Laura Martin
So I think we need to see it. Google is looking for Google to report 9% search growth, YouTube growth, and 10 cloud growth. The fact that the search number and its search ad number are kept in around two digits means that the above 10% exceeds the whisper. Less than 9% would be bad. That means generative AI answers are eating revenue per query. They are the reason why growth is not slowing because revenue is equal. But if you see a break in it, it would be bad for stocks. However, as long as they report ad revenue growth of more than 9% from the search, I think the stocks are specifically fined. It hit the bottom in April. I've been doing great runs since April, but as you say, from now on, I'm flat from the beginning of the year until now. So if your search breaks double-digit growth rate, uh, second quarter revenue growth rate, then stock performance will improve.
04:06 Speaker a
As Laura, what do you think is its competitive advantage now in this competition with something like open AI?
04:43 Laura Martin
Well, I think the most important thing people are missing about Google is that you know, that it has control over the search. But I understand, but I searched, but it happened to be the second mobile, uh, Android. Now there's a cloud business that Amazon invented, and these guys were behind, but they're one of three winners. They are one of three cloud companies, Amazon and Microsoft. And now it has Gemini, one of the top two or three, depending on who you ask, a large language model, and a large language model of your own. So, in all cases, for the last four technical confusion, Google has a place, a place to play, and these have acquired all the economics. So the good thing about the alphabet is that in each of these technological waves they had the human capital to exploit it and its strategic position. And, as we all know, when we use generative AI, data is really valuable and who has better data than Google? Between YouTube and search, there is data that is second to none other than 3 billion active monthly users. So I just think they are actually really well positioned strategically for a future of generative AI.
