After subtracting Alphabet’s advertising commissions, revenue was $17.52 billion, which also beat Street forecasts. This is the first time in more than 10 quarters that Google’s revenues and earnings per share have come in higher than market expectations. PICTET BANK & TRUST Ltd acquired a new stake in shares of Alphabet during the fourth quarter worth $5,242,000.
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Analysts on an average were expecting revenue of US$20.76 billion, according to Thomson Reuters I/B/E/S.
Google parent company Alphabet reported revenues of $21.5bn in its second-quarter results as advertisers continue to shift to mobile. This is the second quarter that Google has broken out revenues for its various other ventures-collectively referred to as “other bets”-like its autonomous auto initiative, Google Fiber, Calico and Google X. The numbers reveal that while revenues from these ventures increased from $74 million one year ago to $185 million, losses did so as well, from $660 million to $859 million in the second quarter of 2016″.
In the past year Alphabet Inc’s stock price has increased by 15.79% from 661.43 to 765.84.
Google’s moonshot factory lost the search giant nearly $1bn in just 12 weeks – more than many tech firms rake in each year.
From the Alphabet’s standpoint, the other business it has under its wings, including Google Fiber (broadband), Nest (home automation products), self-driven cars, and X- a research facility, is yet to pick up on a bigger scale.
While Alphabet does not break out the figures geography- wise, Google enjoys a strong presence in India. But as I noted in my earnings preview earlier this week, the primary source of revenue for each of these sub-segments – and Alphabet overall – is advertising.
Although Google has a presence in mobile for long advertisers usually pay less for user clicks on mobile advertisements compared to the desktop ads which have been the strength of Google.
Revenue, fueled from the advertising business of Google, increased by 21% ending the quarter at $21.5 billion.
Porat also pointed to “solid” growth in both desktop and tablet search, while YouTube revenue continues to grow at a rapid clip.
Google’s most extreme bets are starting to generate more sales – but at a great cost.
Next, Aggregate paid clicks climbed 29% year over year, including 37% growth in paid clicks on Google websites, and flat growth in paid clicks on Google Network Members’ sites.
Advertising powered Internet giant Alphabet Inc.’s revenue growth in the second quarter, as it has for years now.
In the end, there was little not to love about this impressive report from Alphabet.
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Alphabet added more than 2,000 employees in the second quarter and most were engineers and product managers to support growth in priority areas such as cloud and apps, Chief Financial Officer Ruth Porat said on the call.
