3 Highlights of Alphabet’s (Google) Result Update

  • Jul 25, 2018 AEST
  • Team Kalkine
3 Highlights of Alphabet’s (Google) Result Update

Alphabet, the parent company of Google has reported that in the second quarter the expenses from its Google search business grew slower as compared to the prior corresponding period, while revenue rose and spiked more than the expectations and profits went above the targets of Wall Street. This led the shares of Google soar up 3.6 per cent as on July 23, 2018 and Google (NYSE: GOOGL) traded at a market price of $1211. Alphabet has thus witnessed quarterly revenue growth of at least 20 percent, year on year for the past two years.

Regulatory Updates: Google has also been under the regulatory pressure from regulatory authorities and European privacy rules as it is a dominant player in online advertising; and the antitrust battle has led to a $5 billion fine for the quarter. Google has been forced to hire more analysts because of the pressure by government to improve moderation of user-created content. In the competitive environment and offerings from Netflix and media conglomerates such as AT&T Inc., Google owned streaming service YouTube has increased its spending on all video-based content to avoid consumers from shifting.

Leadership Change: However, what is called the traffic acquisition costs, the quarterly growth rate for what the company pays ad partners, fell for the first time in three years. Google search has grown globally, and company is selling more ads as its YouTube video service. Cloud and AI services help google to craft ads better. Meanwhile, John Giannandrea, Google’s AI and Search Chief was recently hired by Apple while two other cloud and AI leaders have left Google over the past month. COO Diane Bryant of Google Cloud and Google’s Senior director of engineering, Shahriar Rabii was poached by Facebook to develop its new AI-focused chips.

Key Financials: Group’s second quarter revenue settled at $US32.66 billion with adjusted earnings per share of $US10.58. The company’s operating margin excluding the $5 billion antitrust fine issued recently by the European Commission over Google’s anticompetitive licensing of Android software, rose to 24 percent from 22 percent last quarter, however, the margin was overall down from 26 percent a year ago. The company’s net profit dropped from $3.5 billion to $3.2 billion because of the fine but latest result focuses on its operating results. Alphabet’s unit ‘Other Bets’ which features Google fiber provides broadband internet services in selected cities through-out the U.S. The shares of the company have also benefited from easing regulation concerns. While it is too early to measure the impact on all the fronts, the company has been moving on a cautioned path.

As consumers globally, and advertisers devote increasing attention to smartphone and TV apps instead of newspapers and traditional TV broadcasts, Alphabet and Facebook Inc and other leading application makers have become big forces in advertising. However, cost concerns are tempering into Alphabet’s outlook and Amazon.com Inc’s encroachment into advertising has endangered deals of Google with advertisers and media companies. Nevertheless, Google is a big giant that can keep knocking down many with its strategic moves. Google has seen a price change of $13.12 or a percentage rise of 1.1% as at July 23, 2018.

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”

ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.

Click here to get your free report.


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.


There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.



All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.


We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK