Alphabet's Google is now the fourth-largest enterprise software company, according to the chief executive of its cloud-computing business, Thomas Kurian. Cloud growth has been a bright spot for Google stock.
"When I started, most people told me that we didn't have a chance. We're now the fourth-largest enterprise software company," Kurian said at the Goldman Sachs Communacopia conference on Tuesday, according to a FactSet transcript.
Kurian didn't specify whether Google is No. 4 in enterprise software by revenue or another measure. Google didn't respond to a request for clarification.
The biggest software company by revenue is Microsoft, followed by Oracle.
Kurian, a former top executive at Oracle, took over as the cloud-computing unit's CEO in January 2019. He replaced Diane Greene.
Google reported second-quarter cloud-computing revenue of $10.35 billion, above estimates of 27% growth to $10.22 billion. Cloud revenue included sales of "Workplace" productivity software. Google does not break out Workplace revenue separately.
In addition, Salesforce's Q2 revenue climbed 8% to $9.33 billion. SAP's Q2 revenue rose 8% to $8.99 billion. SAP is headquartered in Germany.
On the stock market today, Google stock was mostly flat, last down a fraction at 148.58. Also, Google stock has gained 6.5% in 2024.
Will Acquisitions Move Google Stock?
Google's only big acquisition has been Looker, a data analytics firm, for $2.6 billion in early 2020.
Over the years, some analysts have speculated that Google could make a bigger software acquisition, even Salesforce.
In cloud computing, Google competes with Amazon Web Services, part of Amazon.com and Microsoft.
Meanwhile, Google has tried to woo enterprise customers with cloud-based data-analytics and artificial-intelligence tools.
Analysts say the unit's AI-based "BigQuery" data analytics services has gained traction in the enterprise market.
Kurian said the cloud unit's artificial intelligence business is booming.
Google Stock's Technical Ratings
"Sixty percent of all AI-funded startups use our infrastructure for training or inference," he said at the Goldman conference. "We're also seeing traditional companies now building both high-performance and generative-AI models on our cloud. An example is Ford Motor Company."
Also, the Relative Strength Rating of Google stock currently stands at only 37 out of a best-possible 99, according to IBD Stock Checkup. The best stocks tend to have an RS rating of 80 or better. The relative strength line has tumbled.
Moreover, Google stock holds an Accumulation/Distribution Rating of E. That institutional ownership rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.
Further, shares hold an IBD Composite Rating of 63 out of 99. The best growth stocks have a Composite Rating of 90 or better.
According to MarketSurge, Google stock is not in a buy zone as of Sept. 11. Alphabet stock needs to form a proper base to be actionable.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
