Alphabet Record Earnings Compensated for the Fine of the EU

Alphabet the parent company of Google reported record revenues for the second quarter of the year that are significantly higher than expected. With this, the giant has shown investors a long-awaited sign that his big expenses have finally been mastered. The market reacted positively to the news, and Alphabet jumped 5%

The Alphabet profit in the second quarter rose to 32.7 billion dollars up from 26% compared to the same period last year. The company also provides alternative data on the appearance of its profits if it has not been fined – then it would have been close to $ 7.9 billion, or nearly $ 1 billion. more than last year.

did not suffer seriously because of the record fine imposed by the European Union on the company. Last week, the EU fined Google $ 5 billion for unfair practices on Android. The huge amount, however, did not particularly affect the end result in the financial report of the company

This is due to the good good performance of products and services in all the categories. The difference is seriously offset by hardware sales and the Google Play Store. Revenue growth is 37% to $ 4.4 billion. Google has almost doubled its capital expenditure to expand its cloud services business. Revenue growth also occurs with other Alphabet companies, but there are also losses due to larger investments. However, the Alphabet outlook remains slightly reduced by cost fears Canaccord Genuity badyst Michael Graham said in a report this month

Alphabet is lagging behind Facebook , Amazon.com and Twitter in the market valuation, measured by the ratio between the value and the expected profits of the company. The value of the company, market capitalization and debt less cash, is trading at 13 times the expected income for the next 12 months, compared to 14 times for Facebook, 24 times for Twitter and 26 times for Amazon