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Alphabet’s Stock Soared Surpassing Estimates

Google‘s parent company Alphabet Inc.’s second-quarter report shows growth in profit beating expectations.

The American multinational company Alphabet Inc. declares a 9% rise in its second-quarter annual report amid antitrust woes. “Our effort to build a more helpful Google for everyone brings countless opportunities to help users, partners, and enterprise customers every day,” said Sundar Pichai, Chief Executive Officer of Google.

“From improvements in core information products such as Search, Maps, and the Google Assistant, to new breakthroughs in AI and our growing Cloud and Hardware offerings, I’m incredibly excited by the momentum across Google’s businesses and the innovation that is fueling our growth,” Pichai continued.

The report shows a revenue of $38.9 billion beating Wall Street’s estimate of $38.2 billion. “With revenues of $38.9 billion, up 19% versus the second quarter of 2018 and up 22% on a constant currency basis, we’re delivering strong growth,” Chief Financial Officer of Alphabet and Google, Ruth Porat says.

Alphabet also reported an earnings per share of $14.21 surpassing the $11.30 per share expectation from the Refinitiv Survey of analysts. Most of Alphabet’s revenue came from Google advertising wherein Google reported advertising revenue of $32.6 billion for the 2nd quarter. Paid clicks on Google properties rise 28% in the 2nd quarter of 2019 compared to the same quarter last year.

With the growth of tech companies, the US Department of Justice announced a broad antitrust review of major online platforms. Speaking of, the justice department launched an antitrust investigation for Google.

“It’s not new to us,” said Pichai. “We have participated in these processes before … To the extent we have to answer questions we will do so, and to the extent there are concerns we will address them,” he added.

“It’s important that we stay focused on building helpful products for users,” Pichai said.

Alphabet also announced the approval of its Board of Directors to repurchase an additional $25.0 billion of its Class C capital stock.