Alphabet, Inc. | $GOOGL Stock | Shares Surge As Q2 Earnings Smash Expectations

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Alphabet, Inc. (NASDAQ: GOOGL)


Investors of Google parent Alphabet, Inc. had a lot to celebrate after the tech giant unveiled its second-quarter financial results for the three months ended June 30, 2018.

The company easily beat Street views on both its top and bottom lines, despite having been at loggerheads with the European Union in the past year.

Last week, EU regulators struck the California-based firm with a record $5 billion fine over Android antitrust violations.

The regulators had earlier imposed a $2.74 billion in the second half of the previous financial year. Investors were already excited in the run-up to the earnings report after the closing bell Monday.

GOOGL stock ended regular trading at $1,211.00 after climbing $13.12, or 1.10%. In the extended trading session, the stock gained $45.00, or 3.72% to 1,256.00.

Alphabet’s class A shares have climbed 15% since the beginning of the year, while the S&P 500 has surged 4.8%.

GOOGL Earnings & Outlook

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The company posted net income of $3.19 billion, or $4.54 a share. In the same period last year, the company had net income of $3.52 billion, or $5.01 a share.

After stripping out amortization expenses and special items, the company earned $8.27 billion, or $11.75 a share during the quarter. Analysts surveyed by Thompson Reuters had expected the company to reported adjusted earnings of $9.59 a share.

Had it not been for the recent fine, the search engine giant said it would have posted per-share earnings of $11.75, well above Thompson Reuters estimates of $9.64 a share.

Total revenue during the quarter was $32.66 million, an increase of 25.6% from $26.01 billion in the second quarter of last year.

Alphabet Company Comments

While announcing the results, Alphabet, Inc. Chief Financial Officer made the following remarks: “We delivered another quarter of very strong performance, with revenues of $32.7 billion, up 26% versus the second quarter of 2017 and 23% on a constant currency basis. Our investments are driving great experiences for users, strong results for advertisers, and new business opportunities for Google and Alphabet.”

Alphabet, Inc. Company Profile

Alphabet, Inc. engages in the provision online advertising services in the US and globally. The company operates through Google and Other Bets segments. It offers brand and performance advertising services.

The Google segment offers principal Internet products, including YouTube, Chrome, Ads, Google Maps, Android, Google Play, Commerce, Google Cloud, Hardware, and Search.

In addition, it offers enterprise cloud services, hardware products, and digital content, as well as miscellaneous services and products.

The Other Bets segment involves businesses, such as Nest, Access, GV, Calico, Verily, CapitalG, X, and Waymo, as well as Television and fiber Internet services.

The competitors of the company include Apple, Yahoo, Microsoft, Yandex, Amazon, Baidu, eBay, Naver, LinkedIn, Seznam, Kayak, WebMD, Criteo, Twitter, Facebook, Hulu, AppNexus, and Netflix

Alphabet Inc. was founded in 1998 by Sergey Mikhaylovich Brin and Lawrence E. Page. Its headquarters are located in Mountain View, California. –Reuters