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Technology Google mother Alphabet exceeds estimates - Alphabet share jumps in

16:00  30 october  2020
16:00  30 october  2020 Source:   finanzen.net

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The balance sheet of the IT giant Alphabet for the third quarter of 2020 at a glance.

PHILIPPE HUGUEN/AFP/Getty Images © Provided by Finanz.net PHILIPPE HUGUEN / AFP / Getty Images

Booming advertising revenues and a strong cloud business caused profits to jump in the third quarter despite the corona pandemic at the Google parent company Alphabet . The net result shot up by almost 60 percent year-on-year to 11.2 billion dollars (9.6 billion euros), as the Internet giant announced on Thursday after the US market closed in Mountain View. Revenues grew 14 percent to $ 46.2 billion.

After a setback in the previous quarter, Google's advertising business - Alphabet's main source of income - was up and running again and contributed the largest share of sales at $ 37.1 billion. In addition, the advertising revenues of the video subsidiary Youtube and the cloud business with IT services and storage space on the Internet also flourished.

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"We had a strong quarter," said CEO Sundar Pichai. The day before, he had to justify himself in addition to his Facebook and Twitter counterparts Mark Zuckerberg and Jack Dorsey in the US Senate. A few days before the US election, representatives of President Donald Trump's Republican Party accused the "Big Tech" managers of suppressing conservative views on their platforms and threatened them with stricter laws.

Last week, the US Department of Justice also filed a long-awaited competition lawsuit accusing Google of illegally exploiting its market power in Internet search and related advertising. The quarterly figures underline this dominance once again. But Alphabet also delivered brilliant numbers in almost every business area. Even bets on future technologies such as self-driving cars, which are accounted for as "other bets", posted a considerable increase in sales.

The results clearly exceeded expectations: Alphabet shares, which are traded on the NASDAQ, jumped 5.87 percent to 1,659.19 US dollars on Friday. Finanzen.net editors / dpa-AFX

Google antitrust: Just how much do you actually use it? Way more than you think .
E-mail, calendar, search from Google are just the tip of the iceberg. Could you live without Maps or Waze, or your Chromebook?Google's influence in our lives is overwhelming, which is perhaps one of the reasons the Department of Justice and several state attorney generals banded together to file an anti-trust lawsuit against the company.

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