Alphabet generated revenue of $32.66 billion during the second quarter of 2018, compared to $26.01 billion during the same quarter previous year. Several analysts lifted their price target on the stock. Traffic acquisition costs accounted for 23 percent of Google ad revenues. "All this led to EBIT outperformance for the first time in 3 quarters".
A majority of the revenues came from its search engine and the YouTube video streaming website, with revenues totaling $32.5 billion.
Top-line growth was also strong.
The company's CEO Sundar Pichai said it was too early to understand the impact of the fines on Android's operations. The quarter marked 12 straight quarters of organic revenue growth above 20%. "Although 24% GAAP Operating Margin was below the three-year average of 26%", the analyst Mark Mahaney said. The headlining story of this release is that the market was surprised by Google acheiving far stronger ad sales than expected. Despite a $120 billion revenue run-rate.
Google also has tweaked its comparison shopping service as it strives to comply with an European Union ruling from past year, and it plans to soon release changes to how it handles political ads.
Iran: If Trump wants to talk, he'll have to call
The US has told India and other countries to cut oil imports from the Gulf nation to "zero" by November 4 or face sanctions. US crude oil exports to India hit a record in June as Indian refiners moved to replace supplies from Iran and Venezuela.
The monster quarter came despite a regulatory backlash in Europe, rising questions about Google's massive data collection and clashes with advertisers over inappropriate content on YouTube.
The results topped Wall Street expectations. That leaves the infamously opaque "other revenues" segment - including the hardware business, Play Store, etc. - to bring in $4.4 billion in revenue.
"Other notable takeaways: 1) Waymo passed 8M miles of autonomous driving tests on public roads". Still on track to launch a commercial rider program in Phoenix by yr-end. "That's down from 24 percent last quarter, and aligns with Alphabet CFO Ruth Porat's advisement last quarter that the TAC as a percentage of revenue would slow beginning in Q2".
"Outside of the advertising business, Cloud continues to be a focal point within Alphabet's portfolio of businesses, both in terms of capex and hiring. There was little commentary on the General Data Protection Regulation (GDPR) and the EC's Android fine, citing recent implementation/enforcement". The company is appealing the decision but included the charge in its latest quarterly earnings report. The storied motorcycle maker managed to beat analyst profit estimates by 11 cents.