Left Menu
Development News Edition

Alphabet sales growth back as Google key for advertisers

Google parent Alphabet Inc returned to sales growth in the third quarter as businesses initially hobbled by the coronavirus pandemic resumed advertising with the internet's biggest supplier of ads, the tech giant said on Thursday. Google competitors Facebook Inc, Amazon.com Inc and Twitter Inc also released financial results on Thursday that were above expectations, showing how internet companies have fared well through the pandemic.

Reuters | Updated: 30-10-2020 10:27 IST | Created: 30-10-2020 01:50 IST
Alphabet sales growth back as Google key for advertisers

Google parent Alphabet Inc returned to sales growth in the third quarter as businesses initially hobbled by the coronavirus pandemic resumed advertising with the internet's biggest supplier of ads, the tech giant said on Thursday. Alphabet shares rose 7.3% after ending regular trading at $1,556.88.

Wall Street had expected a rebound from Alphabet because the company said in July that advertiser spending was inching back following a March plummet due to lockdowns. Google competitors Snap Inc and Microsoft Corp also reported third quarter revenue ahead of expectations in recent days. Google's namesake search engine and YouTube video service are gateways to the internet for billions of people and have become more essential as they transact and entertain online to avoid the virus. Advertisers have turned to Google's ad system to let shoppers know about deals and adjusted service offerings as the economy chugs along again.

In recent months, Google has stopped charging merchants for some promotional space and issued grants to help other businesses buy ads. The efforts followed the company's first sales decline compared with a year-earlier period in the second quarter, since going public in 2004. But the dominance of Google services has become a liability for the company too. The U.S. government last week sued the company for allegedly abusing a search monopoly and stifling competition. Other regulators in the United States and elsewhere have similar ongoing investigations.

The various cases could lead to Google having to divest some of its ad business in the coming years, though financial analysts doubt it will happen. Google's ad business accounted for 80% of Alphabet's $46.2 billion in revenue in the third quarter. Analysts had expected $42.9 billion in revenue, or 5.9% growth from a year ago.

Alphabet's profit was $11.2 billion, or $16.40 per share, compared with the average estimate of $7.698 billion, or $11.18 per share, among analysts tracked by Refinitiv. Google competitors Facebook Inc, Amazon.com Inc and Twitter Inc also released financial results on Thursday that were above expectations, showing how internet companies have fared well through the pandemic. Facebook shares on Thursday were up 30% this year, Amazon 71% and Twitter 51%.

Alphabet's total costs and expenses rose 12% from a year ago to $35 billion in the third quarter, compared with a 7% jump a quarter ago. Capital expenditures dropped 20% to $5.4 billion, compared with a 12% drop last quarter.


TRENDING

OPINION / BLOG / INTERVIEW

Turbulence surrounding tobacco control in Ghana

... ...

Smart healthcare: IoT redefining the way healthcare is delivered

As the world is embracing the new wave of digitalization triggered by the pandemic and the arrival of 5G, the adoption of IoT devices will further boom. With adoption set to soar, IoT security issues and other challenges cant be ignored any...

Refugee compassion and response: Ideas to mitigate disasters now and in their future

Their homeland becomes a forbidden territory for them and more likely than not, their journey to foreign soil is no less traumatizing, not to say deadly. It is crucial to help refugees live a life of dignity and purpose....

Inadequate water infrastructure causes a tidal wave of coronavirus in rural Alaska

... ...

Videos

Latest News

Soccer-Maradona's "Hand Of God" shirt could be yours - for $2 mln

The shirt worn by Diego Maradona when he scored his famous Hand Of God goal against England at the 1986 World Cup in Mexico could be available for 2 million following the Argentines death on Wednesday, says an American sports memorabilia ex...

Rugby League-Last-gasp Welsby try wins Super League Grand Final for St Helens

Teenager Jack Welsby scored a brilliant try after the full-time hooter to give St Helens an 8-4 victory over Wigan Warriors in a thrilling end to the Super League Grand Final on Friday as they won their second successive title. Lachlan Coot...

U.S. appeals ruling that barred Postal Service changes before election

The U.S. Postal Service USPS and President Donald Trump late Friday appealed a federal judges ruling suspending service changes and requiring aggressive steps to ensure ballot deliveries ahead of the November presidential election, the Just...

Honduran ex-president Zelaya says 'unjustly' detained at airport with bag of money

Former Honduran president Manuel Zelaya said on Friday that he has been unjustly detained at the Central American nations Toncontin international airport as he was getting ready to travel to Mexico for a seminar.The reason, a bag of money w...

Give Feedback