Google parent company Alphabet’s 3Q 2024 results far exceeded analyst forecasts, with net income up 34% to USD 26.3 bn and revenue increasing 15% y-o-y to USD 88.27 bn, according to the company’s earnings release (pdf). Earnings per share increased 37% at USD 2.12.

Driving the boost: The better-than-expected results suggest that the tech giant’s expensive investments in AI are “paying off with consumers and partners benefiting from our AI tools,” CEO Sundar Pichai said in the release. This return on investment is particularly evident in the company’s 35% growth in cloud service sales to USD 11.4 bn and a ramp up in the numbers of users landing at the company’s market-leading search engine, Bloomberg says. Investors had earlier raised concerns that Google was losing ground on AI to rivals Microsoft and OpenAI and that massive investments to close the gap may fail to bear fruit.

But the DoJ may ruin the party, yet: The US Department of Justice (DoJ) said in a 32-pagecourt filing earlier this month that it was weighing measures that could see Google forced to spin off key divisions, share data, and open access to some platforms following a landmark court decision in August which ruled that the company was in violation of US antitrust laws. The tech behemoth is also facing legal challenges over its ads business. Alphabet CEO Sundar Pichai was critical of the DoJ’s legal campaign, warning on a conference call with investors that the measures could have “unintended consequences” for US leadership in the tech sphere, Bloomberg said.

MARKETS THIS MORNING-

Most Asian markets are in the red ahead of Bank of Japan’s interest rate decision later today, with only mainland China’s Shanghai Index up in trading. Over on Wall Street, futures are also slipping after Microsoft and Meta reported their earnings, dragging down their share prices in after hours trading.

ADX

9,328

+0.2% (YTD: -2.6%)

DFM

4,605

+0.5% (YTD: +13.4%)

Nasdaq Dubai UAE20

3,834

-0.1% (YTD: -0.2%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

4.8% o/n

4.4% 1 yr

TASI

12,019

-0.4% (YTD: +0.4%)

EGX30

30,371

-0.8% (YTD: +22.0%)

S&P 500

5,814

-0.3% (YTD: +21.9%)

FTSE 100

8,160

-0.7% (YTD: +5.5%)

Euro Stoxx 50

4,886

-1.3% (YTD: +8.1%)

Brent crude

USD 73.05

+2.7%

Natural gas (Nymex)

USD 2.85

-0.5%

Gold

USD 2,801

+0.7%

BTC

USD 72,515

+0.2% (YTD: +72.2%)

THE CLOSING BELL-

The ADX rose 0.2% yesterday on turnover of AED 1.3 bn. The index is down 2.6% YTD.

In the green: Gulf Pharmaceutical Industries (+14.7%), Al Khaleej Investment (+12.5%) and Gulf Cement Company (+10.4%).

In the red: Response Plus Holding (-2.3%), Alpha Dhabi Holding (-1.7%) and First Abu Dhabi Bank (-1.2%).

Over on the DFM, the index also rose 0.5% on turnover of AED 566.9 mn. Meanwhile, Nasdaq Dubai closed down 0.1%.

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