Google’s Parent Alphabet Inc. Report Quarterly Results beyond Analysts’ Expectations
On Thursday, Alphabet Inc, Google's parent reported its segment based quarterly results after the market closed. Shares of Alphabet gained more than four percent in extended trading and are close to a fresh 52 weeks high.
The results that surpassed analysts' expectations revealed that the company's efforts to push its huge advertising business toward mobile are actually bearing fruits. Concerns regarding the new trend and how it is going to affect Google were alleviated with the healthy results.
Although Google has a presence in mobile for long advertisers usually pay less for user clicks on mobile advertisements compared to the desktop ads which have been the strength of Google.
Colin Gillis, an analyst with BGC Partners said that the strong earnings performance in the quarter suggests that things are starting to change. He added, "They're doing an excellent job of pulling the mobile landscape through to being more efficient."
According to Alphabet, revenue increased 21.3 percent to $21.5 billion and the earnings scaled up to $4.88 billion from $3.93 billion compared to last year same quarter.
After the report was released, shares climbed 6.5 percent to $816 at a point in after-hours trading.