) will report its fiscal second quarter earnings after the bell on Tuesday, giving Wall Street a closer look at the state of the digital advertising market and whether generative AI hype is translating to revenue growth. The tech giant is coming off of an impressive first quarter during which it announced it initiated its first dividend of $0.20 per share and authorized stock repurchases of $70 billion.) are up 18% and 22% year to date, respectively.
But when exactly AI starts to generate revenue for Google’s Cloud business, let alone its ad segment, is still up in the air. Google is still trying to find its footing with AI Overview, the generative AI feature that shows up at the top of Google Search results pages. In May, the company rolled out the search function, only for users to quickly discover that its answers weren’t always accurate, with now famous responses telling users to putWhile generative AI is sure to be a major theme this earnings season, it’s still unclear how much it will boost companies' bottom lines.
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