Alphabet is the large division behind Google, the parent company just reported its earnings for the second quarter of 2018. While Wall Street has been speculating that Alphabet would achieve only $9.52 for a share, however, the company crushed these expectations reaching $10.58 of share.
The results would be even better if Google hasn’t been surprised by the $5 billion fine imposed by the EU Competition Commission during the last week. According to reports, Google’s parent company achieved the margin of $11.75 for each share before the EU court punishment for alleged antitrust violation by Google.
Google also had $1.1 billion investment income that was excluded from the final earnings figure. During the first quarter of 2018 Alphabet reached a margin profit of 22.5%, the parent company saw this margin grow to 24% on Q2. The company achieved a total amount of $33.6 billion of revenue, which beats once again the previous speculations from analysts. Worth noting that 86% of this revenue was generated from Google’s online advertising business.
Some analysts point out that one of Google’s recipes for this grow on revenue was behind the deal with Apple to turn Google the default search engine for each iPhone launched. The contract made Google reduce its expenses and increase its profit margin when compared to previous years results.
Alphabet stock hit an all-time high after some hours after the announcement, and now the Google’s parent company sports a market cap of $875 billion. The Company now races against Apple and Amazon to see which company will become the first trillion dollars public company.