Google’s profits soar as revenue rises 62 percent.


Google’s parent company, Alphabet, did in three months what, until recently, should have taken a year to earn. This is a level of growth that companies of its size rarely achieve, but the epidemic has wiped out all borders for tech firms.

search and advertising company on tuesday reported record profits and revenues For the second quarter, it confirmed the enthusiasm of investors, which has doubled its value in the stock market since the beginning of last year. The stellar results pushed shares modestly higher in aftermarket trading.

Alphabet said it made $18.5 billion, or $27.26 per share, for the quarter. As recently as 2015, it did less than that all year. Analysts did not see this coming, estimating that the company would average only $19.14 per share in profits. Even the most optimistic analyst estimates only $24.43.

Sundar Pichai, Google’s CEO, described the results as “a rising wave of online activity”. Revenue increased 62 percent from a year ago to $61.88 billion; this is an increase not seen since the company’s rapid growth around 2005 when it was just a startup.

With a market capitalization approaching $2 trillion, Alphabet is as far from a start-up as possible. Like Amazon and Facebook, it is often criticized for using its power unfairly, an accusation that companies deny. Bills introduced in the U.S. House of Representatives restricts big tech firms and President Biden appoints Big Tech critics to key regulatory positions.

The pandemic profits companies are making will likely only increase calls to action.

“Regulators are probably the biggest potential roadblock for Alphabet right now,” said Dave Heger, a communications analyst for brokerage firm Edward Jones. “But antitrust lawsuits will take years. Meanwhile, the company will continue to grow and add value to advertisers. History is probably in his favour.”

Alphabet was initially seen as vulnerable to the pandemic, like other big tech companies that offer tools to communicate, shop, play, and work remotely. In the second quarter of 2020, the first full-blown quarter of the virus, Alphabet’s revenue fell slightly as advertisers recalibrated. But it didn’t go down too much and didn’t last long.

When the advertisers realized that the world was not going to end, they went into effect again. This helped not only Google’s main search engine, but also the YouTube video section. YouTube’s ad revenue increased 84 percent in the second quarter compared to the same period of 2020. In a conference call on Tuesday, Google executives talked about how the pandemic is pushing YouTube to become more of an e-commerce site.

Even the cloud storage business, where alphabet is perennial, ran to Amazon and Microsoft, it went well: Revenue increased 50 percent and losses slowed.

Growth took a few more workers. Alphabet hired more than 16,000 people last year, bringing its total employment to 144,000.


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