Alphabet reports robust earnings despite European Union fine

25 July, 2018, 03:03 | Author: Elaine Woods
  • Google's attempt to settle its antitrust case in Europe was too little and too late

Google's parent company Alphabet announced last night that it has posted a net profit of $3.2 billion on revenues of $32.7 billion in the quarter ending June 30.

Alphabet reported revenues of $26.24bn for the quarter, comfortably beating analysts' expectations, and made a profit of $2.8bn, down from a profit of $4.1bn for the same period previous year after the fine. Thomson Reuters had expected something more like $32.17bn.

Google parent Alphabet spent a whopping $5.5 billion on capital expenditures in the most recent quarter, almost doubling that output from a year ago as the company continues to expand its cloud business.

"It's like a delivery company having to pay for a parking ticket", Brian Wieser, a Pivotal Research analyst, said of the penalty, which Alphabet accounted for in the second quarter.

With the European Union penalty baked in, Google posted earnings of $4.54 per share on $32.66 billion in revenue.

Google's attempt to settle its antitrust case in Europe was too little and too late
Alphabet shares soar despite hit to profit from Google’s EU fine

Alphabet, Facebook Inc and other leading application makers have become big forces in advertising as consumers globally, and in turn, advertisers devote increasing attention to smartphone and TV apps instead of newspapers and traditional TV broadcasts. The company's collective headcount reached 89,058, up from 75,606 in Q2 2017.

Traffic acquisition costs, a key metric in Google's ad business, went up to 23% of ad revenue in the second quarter. Analysts were expecting US$25.55 billion, according to data compiled by Bloomberg. Google's advertising business grew 24% over the quarter.

"We're pleased with the ongoing momentum in our advertising businesses", said Porat on a conference call for investors, adding that Alphlabet has high hopes for the positive impact of machine learning on its ad business. Oddly enough, however, Alphabet isn't spending much money to get those groups going - capital expenditures for Other Bets was a puny $10 million for the quarter, compared to $148 million a year ago. "The common thread you'll head on today's call is the benefit of machine learning and artificial intelligence", he said.

"I think overall it [Android] has created more choice for everyone, not less", Pichai said during the call, when asked about the European Union decision. "One of the unintentional consequences of GDPR is the strengthening of the duopoly", said Gil Elbaz, a former Google executive who now runs the marketing firm Factual.

The Nasdaq Composite hit a record high on Tuesday as Alphabet's blowout results sparked a rally in high-growth stocks and bolstered expectations of a robust earnings season, while a rise in oil and metal prices boosted energy and material companies.

United States intelligence chief says no disrespect intended toward Trump
White House press secretary Sarah Sanders claimed later in the day that Trump was saying "no" to answering additional questions. Pat Toomey of Pennsylvania, did not shy away from criticizing Trump's comments in Helsinki.

Theresa May faces claims of abandoning Brexit amid Tory ‘war’
In his resignation letter Mr Johnson said Mrs May's Brexit strategy killed the "dream" of breaking free from the European Union . In the afternoon, Mrs May will appear before a House of Commons committee to answer questions on her Brexit strategy.

Whistleblower Alleges Tesla Has Misled Investors
Following the change, Tesla buyers will only be eligible to receive the full $7,500 federal tax credit until December 31. People walk past a showroom outside Tesla China headquarters at China Central Mall in Beijing, China July 11, 2018.



‘I, Tonya’ Spoof Starring Danica Patrick And Aaron Rodgers Premieres At ESPYs
The newly retired racecar driver was the first woman to host the annual show honoring the past year's best athletes and moments. The awards recognize the best athletes in addition to the experiences and the best all-around members of the community.

Thunderstorms, Heavy Rain Headed to MetroWest
In addition, there may be some vivid lightning and damaging, straight-line wind gusts within any of these storms. The next rain and storms chance is very slim with an isolated possibility on Sunday mainly in the afternoon.

Netflix Falls Short of Q2 Subscriber Expectations Worldwide, Stock Dives
Netflix's marketing budget increased 92 percent since the same time a year ago , hitting $526 million for the quarter. Netflix said Monday that it expects more competition, but dismissed any potential negative impact on its business.

Daley Blind closing in on Ajax return
Manchester United have agreed a deal with Ajax for Daley Blind to return to the Dutch club. But since Jose Mourinho arrival in 2016, Blind's playing time has decreased significantly.

Royals release adorable christening portraits from Prince Louis’ christening
The British royal family released four photographs on Sunday (July 15) to commemorate Prince Louis' christening . TAP IMAGE FOR GALLERY The fifth-in-line to the throne giggles with delight in the fifth portrait.

Trump Arrives in Finland for Meeting With Putin
But doing so, Huntsman cautioned, "doesn't necessarily mean that the Russians are going to follow through". And so having meetings with Russia, China, North Korea , I believe in it.

Brit diver describes unprecedented Thai cave rescue
They have been recovering in hospital since they were rescued over three days last week and will discharged on Thursday. They planned to be in the cave for an hour, but flood waters forced them deeper into the cave until they were stranded.

Belgium star Hazard drops Chelsea exit hint
Next week it will be Bayern. "You know my preferred destination", Hazard said. We all know that I've always felt well at Chelsea , so.

Mueller asks court for 100 more blank subpoenas ahead of Manafort trial
Defense lawyers, in response, said the government had selected "snippets" of the conversations to support their version of events. A filing from special counsel Robert Mueller's office might shed some light on why Manafort wanted to stay where he is.

Trump claims North Atlantic Treaty Organisation victory after 'go it alone' ultimatum
Contrary to what Trump's supporters will say, the Mueller investigation is clearly not ending any time soon, nor should it. President Donald Trump as a negotiation partner at their upcoming talks in Helsinki , the Kremlin said Friday.