Facebook said Wednesday that its second-quarter profit almost tripled to $2.1 billion over a year ago, easily beating Wall Street estimates.
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Online advertising has fuelled a 21% rise in quarterly profits for Alphabet, the parent company of search engine Google. This is especially good news following Alphabet’s lackluster first-quarter earnings, which disappointed when the company missed analyst estimates of $20.38 billion in revenue. The share prices of the technology giant rose by 6.5 per cent to United States dollars 816, during the after-hours trading on July 28.
In the second quarter earning call, Alphabet also reports that the net profit rose to $4.88 billion, or $7 a share as compared to $3.93 billion, or $4.93 a share in the previous year. “Video is the killer format on mobile”, Pichai said.
“Mobile clicks are likely to see increased monetization as Google continues to experiment with formats and presentation”.
While the Google unit accounts for virtually all of Alphabet’s revenue, analysts and investors have closely watched financial results of the other initiatives for a sense of how much money they are losing. Ad revenue was up 19 percent to United States dollars 19.1 billion, and “Google other” rose 33 percent to USD 2.17 billion. Second-quarter 2016 revenues represented a 21 percent increase over the same period previous year.
Alphabet is not conceding any ground to rival Facebook when it comes to winning mobile ad dollars. And Google saw a 37 percent year-over-year jump in paid clicks on its websites.
Many analysts credit her with keeping expenses in line and for giving shareholders more visibility into Google’s spending.
Google and other tech players are hoping to siphon advertising dollars from traditional television, where advertisers will spend a projected USD 70.6 billion in the United States this year, according to market research firm eMarketer. But, its shows that both advertising medium can co-exist on one Internet ecosystem.
Therefore, the company doesn’t expect everything to pay off in a big way – and isn’t bothered that they are, in Porat’s words, “pre-revenue”. “We continue to invest responsibly in support of our many compelling opportunities”, said Ruth Porat, CFO of Alphabet.
Google-parent Alphabet Inc.is translating well to mobile.
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While reporting the second quarter results, Alphabet said Google was categorised as a single segment while the rest of its businesses were clubbed together as “other bets”.
