Yahoo Finance Google beats expectations, shares jump
Alphabet (GOOG), the parent of search giant Google reported numbers that were stronger than expected, and shares are rallying.
Revenue excluding traffic acquisition costs increased to $17.52 billion, beating expectations for $16.88 billion. Earnings jumped to $8.42, which was better than the $8.03 expected.
Advertising revenues jumped 19% to $19.14 billion.
“Our terrific second quarter results, with 21% revenue growth year on year, and 25% on a constant currency basis reflect the successful investments we’ve made over many years in rapidly expanding areas such as mobile and video,” Alphabet CFO Ruth Porat said. “We continue to invest responsibly in support of our many compelling opportunities.”
Paid clicks on Google websites increased 37% year-over-year, while cost-per-click fell 9%.
Alphabet’s Google is the world leader in search technology. Other brands owned include Android and YouTube. The companies’ most exciting sources of incremental growth are expected to come from mobile usage, video, and Google Play.
Revenue for Alphabet’s “other bets” — including Google Fiber, Nest, Verily and Google X — climbed to $185 million from $74 million a year ago.
The stock is up around 2% in after-hours trading.
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Sam Ro is managing editor at Yahoo Finance.
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