Alphabets first quarter earnings and earnings are higher than expected.

category:Internet
 Alphabets first quarter earnings and earnings are higher than expected.


Affected by this news, Alphabet shares rose about 1% in the after hours trading on NASDAQ on Monday. This achievement relieves peoples concern that the companys investment in new ventures outside its core search business will undermine its performance. At the same time, it shows that there is no indication that the global anxiety about privacy has affected its profitability. Ivan Fernsais (IvanFeinseth), an analyst at TigressFinancialPartners, pointed out: strong economic growth allows businesses to invest more in advertising, while the shift from traditional media ads to online and social media ads continues, and Gu Geji continues to dominate the field of mobile and desktop search. . Alphabets profit margin has declined in recent quarters because its core Google sector has grown faster on new projects such as cloud computing and hardware, although its spending on non - profit projects, known as other bets, has diminished. Overall, Alphabets first quarter net profit of $9 billion 401 million and diluted earnings per share were $13.33 per share, compared with an average forecast of $6 billion 560 million in the first quarter and $9.28 per share after the first quarter of the Thomson Reuters survey. About $3.40 of Alphabets earnings per share in the first quarter came from Alphabets new accounting approach to the unrealized earnings of start-ups such as Uber. As advertisers increase Googles search engine, YouTube video services, and its millions of partners applications and websites, Googles advertising sales revenue is also rising. In the recent period, investors interest in Alphabet has been weakened by cost and regulatory concerns, and regulators around the world are trying to force Alphabet to change Googles business model, such as allowing customers to have more control over their own data privacy. This year, Alphabets share price has fallen by nearly 3.5%, until last week there was a quick rebound before the announcement of a wave of earnings. At first, U.S. congressmen planned to ask Google to take part in a hearing on the Facebook data disclosure scandal this month, allowing Google to be questioned at the hearing with rival Facebook. He said advertisers could also make restrictions on this years advertising, as they themselves have to figure out how to comply with the EUs new EU regulations, known as the GDPR. However, analysts say any setback will be temporary because of the effectiveness of Internet advertising, compared to the media, such as print and radio. Alphabets first quarter results again show that Googles powerful system has a huge appeal to advertisers, which may help the company quickly get rid of any setback due to privacy. Google also revealed that its Nest, the smart home department, created about $726 million in revenue in 2017. Since its acquisition in 2014, Nests financial performance has never been released. But after the Department was integrated into Google, its financial results were provided to investors on Monday. Last week, EricSheridan, an analyst at UBS, an investment bank, estimated that Nest would contribute $490 million to Googles revenue this. In the first quarter, revenue from Googles growth priorities from mobile app stores and cloud computing services and consumer devices reached $4 billion 400 million. Alphabets operating profit rate in the first quarter fell, in part because the company bought $1 billion 100 million for a HTC team and some related assets responsible for making Pixel mobile phones, which involved about 2000 employees. The first quarters operating costs rose because of the companys granting of equity to its employees, and its live streaming service, YouTubeTV, which needed to buy streaming media rights. Executives of the company said that some of the cost spending will decline this year. Alphabets non operating revenue rose in the first quarter compared with the same period last year because the new accounting standards required to record its investment priorities and the valuation of start-ups such as Airbnb. Previously, only when the shares of start-up companies were sold, would Alphabet report the proceeds from the investment. (Liu Chun) source: NetEase science and technology report editor: Bai Xin _NT4464 Alphabets operating profit rate in the first quarter fell, in part because the company bought $1 billion 100 million for a HTC team and some related assets responsible for making Pixel mobile phones, which involved about 2000 employees. The first quarters operating costs rose because of the companys granting of equity to its employees, and its live streaming service, YouTubeTV, which needed to buy streaming media rights. Executives of the company said that some of the cost spending will decline this year. Alphabets non operating revenue rose in the first quarter compared with the same period last year because the new accounting standards required to record its investment priorities and the valuation of start-ups such as Airbnb. Previously, only when the shares of start-up companies were sold, would Alphabet report the proceeds from the investment. (Liu Chun)