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The Markets
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The Markets
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Online business & e-commerce

Alphabet stock points higher after Google performance beats expectations

Google-parent Alphabet Inc (NASDAQ:GOOG) saw its stock around 7% higher ahead of Wednesday's open, after last night's robust expectation-beating second-quarter results.

Alphabet posted second revenue of US$74.6 billion, up 7% year-over-year and topping Street expectations of US$72.82 billion. Earnings were US$1.44 per share, compared to expectations of US$1.34.

The group's cloud unit increased revenue some 28% year-on-year, at just over US$8 billion versus a market consensus forecast of around US$7.87bn, meanwhile, another highlight feature of the financial report was Youtube advertising revenue which also beat forecasts, coming in at US$7.67 billion versus a prediction of US$7.43 billion.

Whilst ahead of forecasts, overall it was a picture of tightening economics as advertising spending slowed down as enterprise budgets become more constrained

Alphabet has now seen single-digit revenue growth for four consecutive quarters. Google's advertising business grew by 3.3% year-on-year, to US$58.14 billion, which may be described as robust in other sectors but is something of a concern by Silicon Valley standards.

Elsewhere in the business, Alphabet's loss-making unit 'Other Bets' - comprising self-driving vehicle developer Waymo, amongst other investments - saw a 48% rise in revenue, whilst losing just over US$800 million.

Shares of Alphabet were up US$8.47 or 6.9% changing hands at US$130.68 in premarket deals, ahead of Wednesday's open.

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