Google executives trusted Android and other companies, giving investors no sign that an expensive regulatory crackdown in Europe would soon curb sales and profits. Alphabet parent company posted second-quarter results that confirmed Wall Street's expectations, CEO Sundar Pichai hinted at new untapped advertising opportunities, and highlighted the growth of the YouTube and industry video service cloud. . Shares rose to 5.3 percent, most in almost nine months, to $ 1,275 in the open market in New York on Tuesday. The story continues after the advertisement
The Monsters District appeared despite a regulatory reaction in Europe, raising questions about Google's mbadive data collection and conflicts with advertisers over content inappropriate on YouTube. This had erased badysts' expectations before Monday's results
Alphabet reported two different earnings figures to explain a $ 5 billion record fine imposed on Europe last week for violating competition law with Google's Android mobile software. Excluding this, Alphabet stated that the profit was $ 11.75 per share. Google plans to challenge the decision. Even including the record fine, the company generated $ 3.2 billion in net income during the second quarter.
On the earnings call, Pichai suggested that the company would not alter its Android strategy. "I am confident that we can find a way to make sure that Android is available on a scale for users everywhere," he said. Google gives Android to smartphone makers for free, in part because it is the most popular mobile operating system. Pichai's comments suggest that the company will continue the approach.
Google has also ignored the general data protection rule, a European privacy law that began in May and limits targeted advertising.
"There does not appear to be any sign of a significant slowdown anytime soon, as European Commission fines are not likely to hinder the growth rate of Alphabet," writes badyst Brian Wieser at Pivotal Research Group, in a note to investors. "Conversely, regulatory changes such as GDPR in Europe (and similar laws implemented elsewhere) could enhance Alphabet's growth."
Google continued to show ads on mobile phones and bundled more ad products. together, helping to fuel strong sales growth. Financial Director, Ruth Porat, hinted that the company would not sacrifice investment in its advertising for other bets like standalone cars and delivery drones.
"One of the biggest investment opportunities remains in our advertising activities. "Porat told badysts about the income appeal." I do not want to leave you with the idea that the investment just goes to new business. "
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Google's advertising activity grew by 24 percent, pushing total Alphabet Business Revenue, minus partner payments, to 26.24 billion dollars badysts expected $ 25.55 billion, according to data compiled by Bloomberg.These gains came as Amazon.com embodied its own advertising activities.
Pichai He highlighted the increasing use of digital business cards, especially in emerging markets, and said Google is looking at other ways to include ads and promotional placements in their business. Google Maps service, whose Commercial applications have been limited to date.
A larger share of Google's advertising budgets has been allocated to its own digital properties. , rather than external websites that display their ads. Google property revenue jumped 26% to $ 23.3 billion. This jump reflects a recent push by Google to ensure that marketers buy more on its advertising channels. "They use the packaged offer, with all their properties, with a much stronger sell," said Marco Rimini, development director of Mindshare's WPP Plc agency.
While second-quarter sales surged, costs for the tech giant. Google's capital expenditures jumped to $ 5.3 billion, up 87 percent from the same period in 2017. Porat highlighted sales and marketing spending for Google's cloud division, which will host its weekly conference later this week. and mobile partners to distribute its search engine and ads – known as Traffic Acquisition Costs – also reached $ 6.4 billion for the quarter. However, this represented 23% of the advertising business, compared to 24% in the first quarter of 2018.
"The TAC is below expectations, which is clearly positive from the quarter," says Dan Ives, responsible technological research. GBH Insights, written in a note to investors
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Investors are also looking for signs of growth beyond advertising, such as Google's cloud computing activities. The company's other business figure, which includes cloud sales, hardware and applications, grew 37 percent to $ 4.4 billion in the second quarter.
Pichai mentioned new Cloud customers, including Domino's Pizza, SoundCloud and PricewaterhouseCoopers
Other Bets, home of Google's riskiest experimental companies, lost $ 732 million during the quarter, against a loss of $ 633 million in the same period a year earlier.
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