Alphabet moves one step closer to 1-tln-USD company after Q2 earnings report

Source: Xinhua | 2018-07-24

Google's parent company Alphabet Monday announced a remarkable second quarter earnings of 32.7 billion U.S. dollars that beat market expectations in Wall Street, which pushed its shares to an all time-high with a growth of 5 percent in the after-hours trading.

Alphabet's market cap has increased to about 875 billion dollars, which brought the tech giant one step closer to a 1-trillion-dollar company.

Among its Q2 revenues that rose 26 percent over the same period of 2017, Google's advertising business took up most of its earnings, netting 28 billion dollars in the second quarter, up 23.9 percent year-over-year.

"We delivered another quarter of very strong performance, with revenues of $32.7 billion, up 26% versus the second quarter of 2017 and 23% on a constant currency basis," Ruth Porat, CFO of Alphabet and Google, said of the financial results of the quarter ended on June 30, 2018.

Alphabet's profits from its cloud business and hardware sales, plus other revenues, increased 36.5 percent year-on-year to hit 4.4 billion dollars.

Including a massive 5.1 billion dollar fine slapped on the firm by the EU that it has vowed to appeal, Alphabet's earnings per share stood at 4.54 dollars.

Alphabet's capital expenditures jumped to 5.5 billion dollars, almost two times more than the figure of 2.8 billion dollars last year.