Alphabet Shares Hit All-Time High After Earnings

Shares of Google parent Alphabet soared to all-time highs Monday evening, after the company posted a surge in ad revenue that partially made up for a record-breaking $5 billion fine from the EU. MarketWatch tech reporter Max Cherney said that even recent backlash over ad placement on the site won't ultimately deter customers. "Google has to make sure their advertising clients are happy with the placement of their ads," he told Cheddar after the results. "Even though Google has struggled with the issue, and YouTube specifically...at the end of the day Google offers very valuable advertising real estate and most, if not all, of their customers end up going back." Advertising revenue for the quarter rose nearly 25 percent to $28.1 billion in the second quarter. That increase came despite a [CNN report in April](https://money.cnn.com/2018/04/19/technology/youtube-ads-extreme-content-investigation/index.html) that found ads for 300 companies, from Adidas to Hershey to Netflix, appeared next to questionable YouTube content. The company had been plagued by similar scandals throughout last year. Still, research firm eMarketer estimates Google will control 31 percent of the digital ad market this year. On the company's conference call, CFO Ruth Porat said, "One of the biggest opportunities for investment continues to be our ads business, where we're continuing to invest meaningfully." While the EU fine, announced last week as a penalty for abusing the market dominance of its Android operating system, did eat into profit, on an adjusted basis the company posted earnings of $11.75 a share, ahead of analyst estimates for $9.59. Another good signーAlphabet also saw slowing growth in its so-called traffic acquisition costs, or how much the company pays to drive views to its sites. Overall revenue came in at $32.7 billion for the quarter. Sales from its "Other Bets", which include Google's cloud business and hardware division, rose nearly 50 percent to $145 million. For full interview, [click here](https://cheddar.com/videos/alphabet-hits-all-time-high-after-reporting-q2-earnings).

More In Business

So You’re Moving for Tax Reasons? Here’s How to Get Started: Housing

Wanna join the ranks of billionaires Bezos and Musk and flee to a state with no income tax? Here are some things you should know first. (Getty Images)

Food Prices at Their Highest Level in Decades

If you wince at the grocery store checkout, you’re not alone. Wall Street Journal reporter Jesse Newman breaks down why prices are so high – and not going down anytime soon.

Federal Reserve: Inflation Is, Uh, Still Up

An inflation gauge favored by the Federal Reserve increased in January, the latest sign that the slowdown in U.S. consumer price increases is occurring unevenly from month to month. (Getty Images)

One Woman’s Journey ‘From the Battlefield to the Boardroom’

Dr. Sonja Stribling discusses her new book, how she built her career as a nine-figure entrepreneur, and why mentorship is crucial.

The Fed Should Be ‘Patient’ When Lowering Rates

Glen Smith, CIO at GDS Wealth Management, shares how investors can allocate their assets as the market broadens and why he’s eyeing June for the first potential rate cut.

Is 2024 the Most Affordable Year to Buy a New Car?

After years of price increases for cars and trucks in the United States, costs are slowing and in some cases falling, helping cool overall inflation and giving frustrated Americans more hope of finding an affordable vehicle.

Missed Out on Nvidia? Consider These 5 Chip Stocks Instead

Missed out on the Nvidia wave? Oh course you did — you’re reading this article aren’t you, instead of luxuriating on a white-sand beaches of Bali. But here are at least four other promising semiconductor stocks to add to your portfolio.

The Hidden Costs of ‘Buy Now, Pay Later’

MarketWatch reporter Venessa Wong explains what consumers might be missing when they use popular ‘buy now, pay later’ services.

Why Small Business Owners Are Cautious This Year

Robert Rodriguez, Managing Director, Northeast Divisional Director at Chase for Business breaks down the bank’s latest small business report.

Building Lapse, a New Social Media App

Fresh off a successful funding round, co-founder of Lapse Dan Silvertown shares thoughts on regulation, privacy, and why the money for great startups is still out there.

Load More