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Alphabet recorded a revenue of $61.88 billion during the just-concluded quarter against $56.16 billion expected by analysts according to Refinitiv.
Alphabet Inc (NASDAQ: GOOGL) stock traded 4.02% higher in the pre-market to trade around $2,744. The spike has been attributed to the second-quarter earnings results that beat analysts’ expectations. Notably, in Q2 2021 Alphabet recorded a revenue of $61.88 billion during the just-concluded quarter against $56.16 billion expected by analysts according to Refinitiv. Additionally, the company earnings per share of $27.26 versus an estimate of $19.34 according to Refinitiv.
On the YouTube segment, the company received $7 billion against $6.37 billion according to an estimate by StreetAccount. The Google Cloud segment reported a revenue of $4.63 billion versus $4.40 billion expected by analysts according to a survey conducted by StreetAccount.
During the last three months of the first half of 2021, Alphabet’s traffic acquisition cost (TAC) came in at $10.93 billion against $9.74 expected by analysts according to StreetAccount.
Notably, the total Google ad revenue saw a spike of 69% year over year basis to $50.44 billion. According to Google’s chief business officer Philipp Schindler, the retail market was the driving factor in the second quarter’s success. Furthermore, the company noted that it has over 120 million retail televisions connected on its YouTube every month. The figure was further exaggerated by the Covid pandemic that put people at Thermo homes for more hours than usual.
GOOGL Stock and Alphabet Q2 Earnings Results
GOOGL stock has significantly benefited from the ongoing coronavirus pandemic, with a 73% gain in the past year. According to market analytics provided by MarketWatch, GOOGL stock has added approximately 50.52%,11.83%, and 8.04% in the past seven months, three months, and one month respectively through Tuesday.
With a market capitalization of around $1.83 trillion, the company is well poised to capitalize on emerging opportunities in the coming quarters. Consequently, a continued bull market is in order.
Moreover, a study conducted by MarketWatch indicates GOOGL stock received an average rating of Buy from 45 ratings.
Notably, Alphabet chief financial officer Ruth Porat said she expects a “more muted tailwind to revenues in the third quarter.”
As a major contributor to cloud-based technology, the Alphabet stock market is well-positioned to keep on climbing as the demand keeps on rising. During the just-concluded quarter, the company noted that its net profit came in at $561 million.