Alphabet shares hit record highs as Google's results surpassed expectations

Alphabet Inc. shares climbed at prices they never reached Monday in the extended session as Q2 earnings broke expectations after posting a fine record antitrust in Europe.

Google's parent company reported a net profit of $ 3.2 billion for the quarter, or $ 4.54 per share, compared with $ 5.01 per share a year ago, when the company reported a net profit of $ 3.2 billion. company has also been charged with a heavy European antitrust fine. Without the fine, Alphabet reportedly reported earnings of $ 11.75 per share, according to the company, well above the average analyst estimate of $ 9.64 per share, according to FactSet.

Alphabet reported revenues of $ 26.24 billion after taking into account acquisition costs, up from $ 20.91 billion in the second quarter of 2017 and higher than the $ 40.2 billion. analysts' average estimate of $ 25.58 billion.

Alphabet

GOOGL, + 1.10%

GOOG, + 1.74%

shares climbed nearly 5% outside trading hours on Monday at prices above its official intraday record of 1,221.59% gain in regular trading at $ 1,211. The class A shares of the company have gained 15% since the beginning of the year, as has the S & P 500 index.

SPX, + 0.18%

was up 4.8%, giving Alphabet a market capitalization of $ 839.2 billion, according to FactSet.

Google generates almost all of Alphabet's revenue, with the lion's share of that from its advertising business. Google has recorded a turnover of $ 32.51 billion, but has unveiled $ 6.4 billion in traffic acquisition costs, or TAC, which represents the share of revenues that goes to $ Other sites for sending eyeballs to Google ads. According to FactSet, the Google division of Alphabet has achieved a turnover of $ 26.11 billion after taking into account TACs, against average expectations of $ 25.48 billion.

Alphabet does not demolish the huge mass of money from Google. Although advertising revenue comes from different sources – such as YouTube – and different types of ads – such as mobile, video, and search – the company reports only advertising and non-advertising revenue. In the second quarter, Google announced advertising revenue of $ 22.39 billion less TAC, compared with $ 17.58 billion the year before; analysts on expected average advertising revenue of $ 20.99 billion ex-TAC.

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Non-advertising companies within Google – which includes its cloud computing platform, hardware such as Google Home's Pixel speakers and smartphones, as well as revenue from mobile apps from its Play Store, reported revenues of $ 4.43 billion, up from $ 3.09 billion one year ago. According to FactSet, analysts expected an average of $ 4.4 billion in revenue.

The "other paris" Alphabet, apart from Google in the corporate structure, reported $ 145 million a year ago and a loss of 732 million operating of dollars. Alphabet has transferred the Nest hardware business to Google and reduced or moved some of the other bets in the last year. Analysts on average expected the other sectors to report revenues of $ 162 million, with a $ 692 million operating loss.