Focus on the stock of Google's mother: the EU record penalty pushes the gain of the alphabet

Tuesday, July 24, 2018

It could have been a record. However, the recent European sanction imposed on Google considerably increases the benefit of Mother Alphabet. However, the strong sales growth is compelling – and the share price continues to climb

Alphabet, Google's mother, continues to do business thanks to booming advertising revenue, but the company's business is still growing. fine imposed by the European Commission weighs on the quarterly profit. According to the Internet giant, the surplus has shrunk by nine percent over the previous year, rising from 9% to $ 3.2 billion in 2006. The chart

climbed $ 32.7 billion. The expectations of the market were largely exceeded by the penalty despite the high special costs. At first the stock rose more than five percent after the end of the day and was still strong in the recent past. With a market value of nearly $ 840 billion, Alphabet is poised to break the $ 1 billion mark, with Apple, the world's most valuable listed company, taking it to about $ 100 billion. dollars. Even the giant of online sales Amazon has a market capitalization slightly higher than 874 billion dollars.

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"We had another very good quarter," commented Ruth Porat. Google's advertising activity, which accounts for the bulk of business turnover, has grown by 24% to about $ 28 billion.

The remaining business turnover of the subsidiary increased by more than 36% to $ 4.4 billion. Other Alphabet businesses, such as Robot developer Waymo, have seen strong growth but contributed little to $ 145 million in revenue. Alphabet seeks to challenge punishment

Excluding the $ 5 billion fine recently imposed on the company for allegedly abusing its commercial power in the Android smart phone system would rise to $ 8.3 billion.

Although Alphabet wants to question the sanction of the European Commission, it has nonetheless put the burden on the balance sheet. Compared with the previous year 's result, the decline in earnings remained relatively moderate, with the quarterly result also suffering a multi – billion dollar fine from the EU.

Margrethe Vestager, European Commissioner for Competition, Vestager demanded that he be changed within 90 days and threatened new fines, which could also go into the billions. Google rejects the allegations and wants to defend itself with legal remedies.

Source: n-tv.de