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Alphabet beats Wall Street estimates; revenue up 21%

Alphabet shares slid about 2.9% to $969.03 in after-market trades

AFP/PTI  |  San Francisco 

Google-parent Alphabet revenue rises more than expected

parent has reported a quarterly profit of $3.5 billion, with a massive fine by the European Commission biting into earnings.

The technology giant yesterday reported that grew to $26 billion in the recently ended quarter, and that profit would have tallied nearly $6.3 billion if it weren't for a $2.74 billion antitrust fine levied on search engine by the European Commission.

was up 21 percent from the same quarter last year, according to earnings figures.

"We're delivering strong growth with great underlying momentum, while continuing to make focused in new streams," said chief financial officer Ruth Porat.

shares slid about 2.9 percent to $969.03 in after-market trades that followed release of the earnings figures.

Investors have been concerned about what the regulatory trouble in means for Alphabet, which gets most of its money from advertising while investing in "other bets" such as self-driving cars.

Alphabet took in $248 million in revenue and posted a narrowed loss of $772 million in its "other bets" category in the recently ended quarter.

Meanwhile, Google and the are gearing up for a battle that could last years, with the Silicon Valley behemoth facing a relentless challenge to its ambition to expand beyond search results.

Brussels has already spent seven years targeting Google, fueled by a deep apprehension of the company's dominance of Internet search across Europe, where it commands about 90 percent of the market.

In a verdict that could redraw the online map worldwide, the EU's top antitrust sheriff Margrethe Vestager in June imposed a record fine on Google for illegally favoring its shopping service in search results.

The accuses Google of giving its multitude of services too much priority in search results to the detriment of other price comparison services.

The decision - if it survives an expected appeal process - could prove to be momentous for Google, as well as for competition law in general.

The is also examining Google's AdSense advertising service and its Android mobile phone software.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, July 25 2017. 03:57 IST