Google beats Wall Street’s revenue expectations across each major section with strong advertising growth.
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The Parent company of Google, Alphabet Inc. (GOOGL) traded on a positive side during the last trading session. The stock made a strong move on Friday after the company posted mesmerizing third quarter results recently.
GOOGL traded as high as $1,651.00 in the earlier morning on Friday and closed the day at $1,616.11, up by 3.80% adding almost $60 to the shares price. The stock is continuing the bullish momentum from the prior session as it traded up 0.61% during the premarket today.
As we write this at 10:15 A.M. EDT, GOOGL was trading at $1,651.20 soaring by 2.12% after the stock kicked off the day at $1,623.54.
The stock is driven by the unexpected growth of the company during the third quarter. GOOGL remains in a positive motion as the quarterly earnings and revenues have surpassed the analyst estimates by quite a margin.
The company reported its revenue increased to $46.17 billion compared to the consensus estimate of $42.90 billion, while the earnings grew $16.40 per share versus the estimated $11.29.
The remaining segments also recorded thrilling growth as the Google Cloud gained $3.44 billion compared to $3.32 billion which was estimated by analysts, according to StreetAccount. The YouTube ads increased to $5.04 billion compared to the expected $4.39 billion.
The host of Mad Money on CNBC, Jim Cramer said that this was Alphabet’s best earnings he has ever seen, which also includes great revenue. Cramer believes that Google Cloud is doing “amazingly” well and that Youtube is a “profit center.”
After being hit hard by the COVID-19 pandemic, the company made a strong comeback in its core advertising business. Alphabet was among those two online companies, Snap and Pinterest that recorded strong results driven by ads.
Alphabet Inc, (GOOGL) recorded a total of $37.10 billion advertisement revenue compared to $33.80 billion in the prior year period. The Chief Executive Officer of Google, Sundar Pichai stated:
“This year, including this quarter, showed how valuable Google’s founding product, search, has been to people.”
Alphabet Inc. (GOOGL) will report operating income for its cloud business for the fourth quarter and it will break out Google Cloud as a separate reporting segment.
Pichai added that the Google Cloud segment will explore the scale of the investment of Alphabet during the fourth quarter, which will support the company in making progress on the multi-year path ahead to create sustainable value.
