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| Alphabet sales grow again as advertisers return to Google |
Alphabet, Google's parent company, resumed revenue growth on Thursday, beating analyst estimates for the third quarter as the company, which was initially suspended due to the coronavirus pandemic, reverted to the largest advertising company. Advertise online.
Alphabet's stock was up 13% year-on-year, and after the business closed, it was up 8.5% to $ 1,689.89.
Since the start of this year, billions of Google users have been spending more time on online transactions and entertainment as they work hard to prevent the emergence of the new Coronavirus (Covid-19) COVID-19.
Due to the drop in the travel and leisure business, many advertisers stopped spending in the second quarter. As the global economy begins to recover in the third quarter, advertisers have flocked to Google to notify shoppers of new service offers and offers. According to ad analysts: Google has also benefited from spending on political ads ahead of the US presidential election on November 3.
Alphabet (Ruth Porat) chief financial officer, Ruth Porat said ad sales are growing in all regions and industries. For example, US revenue increased 15% in the third quarter and 1% in the second quarter. Porat declined to say whether this trend will continue in the fourth quarter, as Europe and other regions are set to close again due to a sharp rise in infections.
Facebook, which competes with Google, warned on Thursday that the recent increase in online shopping that has had a positive effect on online ad sales may not continue into the next year.
Google's cloud business was virtually unchanged in the second quarter, as did the company's app and device sales and content subscriptions.
Alphabet announced that it will move its cloud business to a separate reporting service starting in the fourth quarter to reduce the financial performance of its Google subsidiaries in the cloud and give investors a direct look at the profitability of the company.
Porat told financial analysts that while another blackout cycle linked to the COVID-19 virus could hurt demand for ads, the company will not slow its spending in the cloud sector.