Alphabet reports growth in advertisement revenue
reported stronger-than-expected advertising sales and higher operating margins, boosting its shares as investors brushed off concerns about higher costs for acquiring mobile users. Third-quarter revenue for Alphabet, the parent company of Google, jumped 24 per cent to $27.8 billion, above the average analysts’ estimate of $27.2 billion. Profit of $6.7 billion, or $9.57 per share, was well ahead of Wall Street estimates. Alphabet has enjoyed torrid growth in recent years as advertising moves from traditional media to the internet and consumers flock to an ever-expanding array of digital devices. While Google faces political pressure, especially in Europe, over its growing dominance and its role in spreading propaganda online, those problems have yet to hit the bottom line. Google Chief Executive Sundar Pichai told analysts that efforts to attract “both large and small advertisers” around the world were paying off, especially in Asia, where sales rose 29 per cent to $4.2 billion. The third quarter was the 15th in a row in which Alphabet has shown double-digit, year-over-year consolidated sales increases.