Google Parent Alphabet Sees Record Highs Despite EU Fine

Google parent Alphabet shares lifted Monday on a stronger-than-expected earnings report for the past quarter, as the tech giant’s results eased concerns over huge fines imposed by the European Union for antitrust actions.

Profit dipped 9.3 percent to $3.2 billion (roughly Rs. 22,000 crores) in the second quarter after accounting for the EU fines, the company said. Revenues meanwhile jumped 26 percent from a year ago to $32.7 billion (roughly Rs. 2.25 lakh crores), better than most analysts expected. Shares in Alphabet jumped 3.6 percent to $1,254.12 (roughly Rs. 86,400) in after-hours trade, which could mark a new record for the Internet giant if confirmed when markets open Tuesday.

“We delivered another quarter of very strong performance,” chief financial officer Ruth Porat said. “Our investments are driving great experiences for users, strong results for advertisers and new business opportunities for Google and Alphabet.”

Last week, EU officials slapped a EUR 4.34 billion ($5 billion) penalty on the US tech giant for illegally abusing the dominance of its operating system for mobile devices.

Without the fine – which is being appealed by the company – profit would have been $8.3 billion. Brussels accused Google of using the Android system’s near-stranglehold on smartphones and tablets to promote the use of its own Google search engine and shut out rivals.

Daniel Ives of GBH Insights said in a research note that despite some regulatory concerns, “advertising and ‘bread and butter’ search revenues were healthy and a good barometer of potential strength heading into the rest of 2018/2019.”

The future of the Android mobile operating system – which powers more than 85 percent of smartphones – has been clouded by the EU action, which could force Google to change its business arrangements with device makers. Google chief executive Sundar Pichai said that it was too soon to speculate on how Android may be affected by the ruling but said the company would take a “constructive approach.”

“We look forward to finding a solution that preserves the enormous benefits of Android to users,” Pichai told analysts after the earnings release.

  • Share your mind about this:

css.php
Count down of few good things.
Where are you?
Kill the Depression.
BTS: My Saviours.
Basic Dining Table Etiquettes That You Should Follow
4 Interesting Facts About Weddings You Never Knew
Mumbai-Ahmedabad bullet train in the works but 40% seats on route go vacant
History Of Halloween: The Visit Of Spirits Of Dead To The Town
Xiaomi Poco F1 Confirmed to Be Flipkart-Exclusive, Key Details Revealed
Xiaomi Redmi Note 5 Pro Open Sales Begin in India
Facebook
Facebook in Talks With Banks to Expand Customer Service
Xiaomi Launches a Smart Bin That Can Automatically Seal and Replace Trash Bags
5 Good Books To Read This Summer
Cocktail booklet
Cocktail by Vikram Karve
APJ Abdul Kalam India 2020
India 2020 – A vision for the new millennium!
Chanakya Neeti Summary by Amrut Deshmukh
Chanakya Neeti- Summary Part 3