WSJ: ‘Google Profits Surge on Strong Ad Demand’

Jack Nicas, reporting for the WSJ:

Alphabet’s growth continued in the second quarter as companies bought more ads on its search engine and other products, while users increasingly clicked on those ads. Alphabet revenue, fueled almost entirely by Google’s advertising business, rose 21 percent to $21.5 billion in the second quarter from a year ago, or 25 percent on a constant currency basis. Excluding payments to advertising partners, revenue was $17.5 billion, beating analysts’ estimate of $16.86 billion.

Net profit for Alphabet rose to $4.88 billion, or $7 a share, from $3.93 billion, or $4.93 a share, a year prior. Excluding certain items, Alphabet earned $8.42 a share, beating analysts’ estimates of $8.04 a share.

Another interesting point of comparison: Samsung’s handset business alone generated about the same results as Alphabet as a whole last quarter.

Thursday, 28 July 2016