A European penalty pushes Alphabets to profit

• Alphabet continues to grow. The turnover climbed from 26% to 32.7 billion dollars .
• Including fine imposed by the EU net profit decreased by nine percent to $ 3.2 billion . Without the penalty for the alleged abuse of market power in the Android smartphone system, the quarterly profit would be $ 8.3 billion and the earnings per share would be 11.75 $ .
• Thus, the group exceeded expectations of Wall Street. According to Thomson Reuters, they calculated sales of $ 32.17 billion on a profit of $ 9.52 per share.

19659009] Wall Street calmly responds to the record penalty of the EU. Compared to the previous week, the share of the Alphabet only lost slightly before the close of trading (up to 0.5%). Shortly before the release of quarterly figures, the price was again rising and rose six percent after hours.

What's Happening Now

Up to now, Google had to spend more money buying clicks for services, which means that manufacturers like Apple are paying to make Google appear like default search engine in the Safari Internet browser. Expenses rose 22% last year. In the second quarter, they fell for the first time in three years.

Investors are eager to see if the trend continues. If the European order complies with the opposition procedure, Google's smartphone and tablet manufacturers in the European market will no longer be forced to preinstall their own search service and web browser if they want to use the Android operating system and the Google App Store. Prices could increase accordingly.

Wall Street is also very interested in comments from Google CEO Sundar Pichai and Ruth Porat, Waymo's chief financial officer. The group subsidiary plans to launch its own driver service with autonomous vehicles throughout America by the end of the year. Waymo boss John Krafcik invested and bought 62,000 cars at Fiat Chrysler and 20,000 at Jaguar Land Rover.