Google parent Alphabet sees record highs despite European Union fine

Adjust Comment Print

Google parent company Alphabet reported blockbuster second quarter earnings on Monday despite being hit with a major European antitrust investigation and $5 billion fine.

In the same quarter past year, Alphabet reported earnings of $8.90 per share, excluding a $2.7 billion regulatory fine the European Union imposed on the tech giant.

Revenues meanwhile jumped 26 per cent from a year ago to US$32.7 billion, better than most analysts expected.

Shares rocketed more than 4pc in after-hours trade, as the market welcomed the strong results, in what could be a sign investors tempered. That was a little hire than the Thomson Reuters consensus estimate of $32.17 billion. The remaining $4.4bn came largely from Google's cloud business and hardware sales.

The company now has $14.1 billion in cash set aside, up $3.4 billion from the end of a year ago, though its marketable securities are down by almost the same amount. Google says it will appeal the decision. Alphabet reported earnings of $4.54 a share in the quarter. He said Google is exploring more ways to insert promoted slots and ads into its Maps service, which has had limited commercial applications to date.

Reacting to another monster quarter from Google parent Alphabet Inc., a CNBC analyst wondered out loud if the tech giant has become more powerful than the US government.

Russian Federation investing $64 billion in Iran’s oil and gas
United States crude stocks rose by 5.8 million barrels last week, compared with a forecast of a decline of 3.6 million barrels. Korean companies have been adjusting their crude oil import volume in line with changing relations between Iran and the U.S.

Googlechief executive Sundar Pichai said that it was too soon to speculate on how Android may be affected by the ruling but said the company would take a "constructive approach".

But the issues have yet to halt Google, which has grown quarterly revenue at least 20 percent year-over-year for two straight years.

The sums Google pays out to websites and mobile partners to distribute its search engine and ads-called traffic acquisition costs-also rose to $6.4 billion for the quarter. Porat highlighted spending on sales and marketing for Google's cloud division, which is hosting its marquee conference later this week.

As Google Translate continues to grow, it is a question of how long will Google wait before trying to cash in on its massive user base? Its "Other Bets" category remains unprofitable overall, as well, with $145 million in revenue compared to $732 million in operating loss.

Through the close of regular-session trading Monday, Alphabet shares had risen 15 per cent since the beginning of the year, while the Standard & Poor's 500 index has risen five per cent.

Comments