In the second quarter, operating losses from those divisions, classified as “Other Bets” in Alphabets financials, totaled $859 million, widening from $660 million a year earlier. Google has traditionally been dependent on desktop searches for powering its advertising revenues, but the shift towards mobiles has finally paid off.
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That performance, which followed strong Facebook results, prompted this CNBC story on how Google and Facebook are basically raking in nearly all the money being made in digital advertising – though that could changed if Verizon has its way following the Yahoo acquisition this week. She also said the company continues “to invest responsibly in support of our many compelling opportunities”. Google controls YouTube which has an audience of 1 billion and growing, with a strong base of users between the ages of 18-49 and 18-34 than any other network in US. Analysts expected $20.76 billion in sales and earnings of $8.03 per share. The company has now market capitalization of 521.43 billion and price to Earning ration of 31.41.
“The strength of the quarter is about mobile”, Google Chief Executive Sundar Pichai said Thursday. Advertising, meanwhile, grew 19 percent, largely on increased revenue from mobile search and YouTube ads.
Alphabet Inc, Google’s parent, revealed that efforts to push its vast advertising business towards mobile is paying off as second quarter earnings handily beat Wall Street’s expectations.
Thursday’s results are the third time the firm reported as Alphabet, a parent company created in October to house Google and a series of “other bets”, from home-automation firm Nest to the research lab X, which is working on long-term projects such as self-driving cars, internet-beaming balloons and delivery drones. The news sent Google’s stock up by as much as 5% in after-hours trading.
So far, that has yielded new popular applications like Google Inbox and Photos, new cloud services for businesses, and also allowed it to improve the efficiency of its giant data centres. That’s when the first gadgets to have AI built-in – Google Home, a device like like Amazon’s Echo speaker and smart home hub, and Allo, a messaging app – will be available.
“When you look at more than 30,000 vehicle deaths in the United States alone” each year, “that’s what really inspired” Google founders Larry Page and Sergey Brin to plow into the futuristic technology, she said.
BGC analyst Colin Gillis suggested that the rising volume of paid clicks on mobile is offsetting falling per click costs.
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But there was one area where the compay did show strong growth that wasn’t related to advertising: Google’s “other revenues”.
