Shares surge at Google's Alphabet as it crushes forecasts

Google is facing a massive fine but its business is doing just fine

Google is facing a massive fine but its business is doing just fine

While the European Union fine, announced last week as a penalty for abusing the market dominance of its Android operating system, did eat into profit, on an adjusted basis the company posted earnings of $11.75 a share, ahead of analyst estimates for $9.59.

Google's advertising business grew 24 per cent, pushing total Alphabet revenue, minus partner payouts, to US$26.24 billion during the second quarter.

Shares rocketed more than 4pc in after-hours trade, as the market welcomed the strong results, in what could be a sign investors tempered. Google is set to appeal the decision, and has already argued that apps are easy to remove and that OEMs are free to preload their own alternatives alongside Google's offerings.

The European Commission has demanded big changes to the Android platform, changes that once implemented could impact Google's huge gains in search revenues.

Google's parent company, Alphabet, said it had absorbed the cost of the European Union fine and made $3.2 billion in profit in its latest quarter. The company had been plagued by similar scandals throughout previous year.

As usual, Alphabet will be holding a conference call with CFO Ruth Porat and Google CEO Sundar Pichai at 4:30 PM ET, and we'll be updating this post with any additional information the company shares.

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But when they took a boat tour on Table Rock Lake Thursday and the water started pouring in, Coleman didn't know what to do. A survivor from the family who lost nine relatives said the captain told passengers not to bother grabbing life jackets.

Alphabet reported two different profit figures to account for a record US$5 billion fine Europe imposed last week for violating competition law with Google's Android mobile software.

"I'm confident we find a way to make sure Android is available at scale to users everywhere", Mr. Pichai said during the call with analysts.

Macquarie Group senior analyst Benjamin Schachter wrote in a report this month that "we are approaching a point where we (and we believe The Street collectively) are not understanding the size of search vs YouTube vs programmatic, which may lead to increasing volatility" in share price.

While second-quarter sales jumped, so did costs for the technology giant. Other revenue, which includes its cloud business and hardware, was $4.4 billion.

Other Bets, the home of Google's riskier, experimental businesses, lost US$732 million in the quarter, versus a loss of US$633 million in the same period a year earlier.

Alphabet has been aggressively looking to expand in several other avenues, right from cloud computing to computers to the voice assistant market, dominated by Amazon's Alexa.

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