Alphabet shares surge on online advertising sales

Google Continues to Raise Marketing Dollars from Advertisers, Powering the Search Giant Online another quarter strong regulatory problems in Europe

Alphabet parent company reported sales in the second quarter, less partner payments, of 26.24 billion US dollars in the second quarter. According to data compiled by Bloomberg, analysts expected a turnover of $ 25.55 billion. The Google advertising business has increased by 24 percent.

The company reported two different profit figures for a US $ 5 billion fine that the European Union imposed last week for violation of competition law. Excluding this, Alphabet stated that the profit was US $ 11.75 per share. Google intends to challenge the decision.

The Alphabet action jumped 6.1% after trading hours.

Google continued to run ads on mobile phones, driving sales growth. Spending on Google Shopping Search Ads, which allows marketers to promote consumer products, increased by 31% in the second quarter compared to the previous year, according to data from the digital marketing company Merkle. These gains came even though Amazon.com inc. Increases his own advertising business.

Google has also ignored the general data protection regulation, a European privacy law that began in May and limits targeted advertising. Similarly, analysts do not expect EU antitrust polls to force changes that significantly penalize Google's results. "Android's fine may suggest that regulatory risk is now in the rear-view mirror," wrote Mark Mahaney of RBC Capital Markets in a note before Monday's results

. . Google's capital expenditures climbed to US $ 5.3 billion, up 87 percent from the same period in 2017. Money paid by Google to websites and mobile partners to distribute its search engine and ads – called Traffic Acquisition Costs – have also increased.

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 hardware, cloud and app sales, grew 37 percent to $ 4.4 billion US in the second quarter.

Bloomberg.com