Google parent company Alphabet was fired up on all cylinders. It gained as much as 9% in after-hours trading, after it smashed many stock analysts’ predictions for both revenue and earnings in its Q3 results, showing strong growth in ad revenue amid the ravaging COVID-19 virus attacks.
What you should know
Highlights of Q3 results
- Earnings per share: $16.40 vs $11.29 expected.
- Revenue: $46.17 billion vs $42.90 billion expected.
- Google Cloud: $3.44 billion vs. $3.32 billion expected.
- YouTube ads: $5.04 billion vs. $4.39 billion expected.
- Traffic acquisition costs (TAC): $8.17 billion vs. $7.66 billion expected.
At the time of drafting this report, the world’s tech powerhouse, Google had a valuation of over a trillion-dollar and was trading at $1,567.24 with its Price/Earning Ratio standing at 32.91.
- However, Google’s parent company disclosed its revenue from “Other Bets,” which includes its subsidiaries outside of Google like the self-driving car company Waymo and Life Sciences business – Verily, brought in $178 million compared to $155 million a year ago.
- Meanwhile, Other Bets showed an operating loss of $1.10 billion, up from $941 million a year ago.
What they are saying
The top brass of Google including its CEO, Sundar Pichai, and Wall street’s Ruth Porat, CFO of Google, gave valuable insights on why the most popular search engine company performed extremely well.
“We had a strong quarter, consistent with the broader online environment,” said Sundar Pichai, Chief Executive Officer of Alphabet and Google.
“It’s also a testament to the deep investments we’ve made in AI and other technologies, to deliver services that people turn to for help, in moments big and small.
Ruth Porat, Chief Financial Officer of Alphabet and Google, said,
“Total revenues of $46.2 billion in the third quarter reflect broad-based growth led by an increase in advertiser spend in Search and YouTube, as well as continued strength in Google Cloud and Play.
“We remain focused on making the right investments to support long-term sustainable value.”