An illuminated Google logo is seen inside an office building in Zurich, Switzerland.
Arnd Wiegmann | Reuters
Alphabet is set to report third-quarter earnings after the bell Tuesday.
Here’s what Wall Street is expecting, based on a survey of analysts by LSEG, formerly known as Refinitiv:
Earnings per share: $1.45
Revenue: $75.97 billion
Here are some other key numbers analysts are watching:
YouTube advertising revenue: $7.81 billion expected, according to StreetAccount
Google Cloud revenue: $8.64 billion, according to StreetAccount
Traffic acquisition costs: $12.63 billion, according to StreetAccount
Google’s parent company is projected to show a return to double-digit revenue growth after four quarters of expansion mired in single digits. The company’s core advertising weakened due to economic softening last year and increased competition from TikTok.
In January, Google announced it was cutting 12,000 jobs, affecting roughly 6% of its full-time workforce, and last month, the company eliminated hundreds of positions from its recruiting organization.
During the third quarter, Google made focused layoffs in various business organizations within the company. An estimated 40 to 45 workers in the news division lost their jobs. The company also laid off more employees from its self-driving car unit Waymo, which recently announced an expansion of its driverless ride-sharing service.
While the company continues to resize after years of unbridled growth finally came to a halt, it’s also investing heavily in artificial intelligence.
Following the launch late last year of OpenAI’s ChatGPT chatbot, Google has been racing to add generative AI technology to more products and is testing it within core search. Generative AI, which provides more creative and thorough answers to simple text queries, could potentially have a major effect on Google’s search — and ads — business if people alter how they look for information online.
In the latest quarter, Google reshuffled its smart assistant that included layoffs as part of an effort to “supercharge” products with AI.
Sergey Brin, one of Google’s co-founders, reportedly made a rare appearance at a recent all-hands meeting, hyping up the company’s AI work. Earlier this month, product managers and designers for Google’s ChatGPT competitor Bard were reportedly skeptical about the tool’s helpfulness.
Along with the changes in its business, Google has seen a dramatic shake-up in its upper ranks. In July, finance chief Ruth Porat announced she will step down after eight years and take on a new role as president and chief investment officer. She told CNBC she’ll also engage with policymakers.
Also during the quarter, the Department of Justice began its antitrust trial with Google, alleging the company maintained a feedback loop with restrictive default contracts to preserve its search dominance. Eddy Cue, Apple’s senior vice president of services, testified that having Google as the default search engine on iPhones was best for consumers because “there wasn’t a valid alternative.”
Amazon logo on a brick building exterior, San Francisco, California, August 20, 2024.
Smith Collection | Gado | Archive Photos | Getty Images
Amazon representatives met with the House China committee in recent months to discuss lawmaker concerns over the company’s partnership with TikTok, CNBC confirmed.
A spokesperson for the House Select Committee on the Chinese Communist Party confirmed the meeting, which centered on a shopping deal between Amazon and TikTok announced in August. The agreement allows users of TikTok, owned by China’s ByteDance, to link their account with Amazon and make purchases from the site without leaving TikTok.
“The Select Committee conveyed to Amazon that it is dangerous and unwise for Amazon to partner with TikTok given the grave national security threat the app poses,” the spokesperson said. The parties met in September, according to Bloomberg, which first reported the news.
Representatives from Amazon and TikTok did not immediately respond to CNBC’s request for comment.
TikTok’s future viability in the U.S. is uncertain. In April, President Joe Biden signed a law that requires ByteDance to sell TikTok by Jan. 19. If TikTok fails to cut ties with its parent company, app stores and internet hosting services would be prohibited from offering the app.
President-elect Donald Trump could rescue TikTok from a potential U.S. ban. He promised on the campaign trail that he would “save” TikTok, and said in a March interview with CNBC’s “Squawk Box” that “there’s a lot of good and there’s a lot of bad” with the app.
In his first administration, Trump had tried to implement a TikTok ban. He changed his stance around the time he met with billionaire Jeff Yass. The Republican megadonor’s trading firm, Susquehanna International Group, owns a 15% stake in ByteDance, while Yass has a 7% stake in the company, NBC and CNBC reported in March.
— CNBC’s Jonathan Vanian contributed to this report.
A worker delivers Amazon packages in San Francisco on Oct. 24, 2024.
David Paul Morris | Bloomberg | Getty Images
Amazon on Thursday announced Prime members can access new fixed pricing for treatment of conditions like erectile dysfunction and men’s hair loss, its latest effort to compete with other direct-to-consumer marketplaces such as Hims & Hers Health and Ro.
Shares of Hims & Hers fell as much as 17% on Thursday, on pace for its worst day.
Amazon said in a blog post that Prime members can see the cost of a telehealth visit and their desired treatment before they decide to proceed with care for five common issues. Patients can access treatment for anti-aging skin care starting at $10 a month; motion sickness for $2 per use; erectile dysfunction at $19 a month; eyelash growth at $43 a month, and men’s hair loss for $16 a month by using Amazon’s savings benefit Prime Rx at checkout.
Amazon acquired primary care provider One Medical for roughly $3.9 billion in July 2022, and Thursday’s announcement builds on its existing pay-per-visit telehealth offering. Video visits through the service cost $49, and messaging visits cost $29 where available. Users can get treatment for more than 30 common conditions, including sinus infection and pink eye.
Medications filled through Amazon Pharmacy are eligible for discounted pricing and will be delivered to patients’ doors in standard Amazon packaging. Prime members will pay for the consultation and medication, but there are no additional fees, the blog post said.
Amazon has been trying to break into the lucrative health-care sector for years. The company launched its own online pharmacy in 2020 following its acquisition of PillPack in 2018. Amazon introduced, and later shuttered, a telehealth service called Amazon Care, as well as a line of health and wellness devices.
The company has also discontinued a secretive effort to develop an at-home fertility tracker, CNBC reported Wednesday.
Former U.S. Army intelligence analyst Chelsea Manning says censorship is still “a dominant threat,” advocating for a more decentralized internet to help better protect individuals online.
Her comments come amid ongoing tension linked to online safety rules, with some tech executives recently seeking to push back over content moderation concerns.
Speaking to CNBC’s Karen Tso at the Web Summit tech conference in Lisbon, Portugal, on Wednesday, Manning said that one way to ensure online privacy could be “decentralized identification,” which gives individuals the ability to control their own data.
“Censorship is a dominant threat. I think that it is a question of who’s doing the censoring, and what the purpose is — and also censorship in the 21st century is more about whether or not you’re boosted through like an algorithm, and how the fine-tuning of that seems to work,” Manning said.
“I think that social media and the monopolies of social media have sort of gotten us used to the fact that certain things that drive engagement will be attractive,” she added.
“One of the ways that we can sort of countervail that is to go back to the more decentralized and distribute the internet of the early ’90s, but make that available to more people.”
Nym Technologies Chief Security Officer Chelsea Manning at a press conference held with Nym Technologies CEO Harry Halpin in the Media Village to present NymVPN during the second day of Web Summit on November 13, 2024 in Lisbon, Portugal.
Asked how tech companies could make money in such a scenario, Manning said there would have to be “a better social contract” put in place to determine how information is shared and accessed.
“One of the things about distributed or decentralized identification is that through encryption you’re able to sort of check the box yourself, instead of having to depend on the company to provide you with a check box or an accept here, you’re making that decision from a technical perspective,” Manning said.
‘No longer secrecy versus transparency’
Manning, who works as a security consultant at Nym Technologies, a company that specializes in online privacy and security, was convicted of espionage and other charges at a court-martial in 2013 for leaking a trove of secret military files to online media publisher WikiLeaks.
She was sentenced to 35 years in prison, but was later released in 2017, when former U.S. President Barack Obama commuted her sentence.
Asked to what extent the environment has changed for whistleblowers today, Manning said, “We’re at an interesting time because information is everywhere. We have more information than ever.”
She added, “Countries and governments no longer seem to invest the same amount of time and effort in hiding information and keeping secrets. What countries seem to be doing now is they seem to be spending more time and energy spreading misinformation and disinformation.”
Manning said the challenge for whistleblowers now is to sort through the information to understand what is verifiable and authentic.
“It’s no longer secrecy versus transparency,” she added.