Event
Google (GOOGL.O) is expected to release its second-quarter financial report on July 25th, Eastern Time. Since hitting a low at the beginning of 2023, Google has been strongly rebounding since March, recording an increase of about 40 points to date.
Key Points
1. Advertising business revenue accounts for as much as 80%, and is expected to return to growth in the second quarter.
Google has multiple business types, mainly including Google services and Google Cloud from a revenue perspective. Advertising revenue accounts for more than 80% of Google's total revenue and contributes to the core source of income. It can be divided into advertising for search and other business, Google Network, and YouTube advertising business. Multiple economic data in the second quarter indicate that the US economic environment is relatively resilient. As the economic expectations transition from strong recession at the beginning of the year to weak slowdown or weak growth, it will affect the advertising timing for advertisers this year.
2. The search market share is stable, with weakened impact from BING.
Google's market share of the search market remains stable. As of the second quarter, Google's search engine market share was 92.64% (-0.47% QoQ / +0.8% YoY), while Microsoft's Bing market share declined to 2.77% (0% QoQ / -0.43% YoY). After the hype of ChatGPT settled down, consumers seem to have chosen to return to Google search, and the impact of Bing has weakened. Google search's moat remains strong and is expected to...