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Google-parent Alphabet profit exceeds $18 billion

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Alphabet’s revenue for the recently ended quarter was $65.1 billion, up from the same period last year.

San Francisco: Google’s parent company Alphabet announced profits reached $18.9 billion on Tuesday, even as Big Tech has benefited from regulatory pressure in the face of the online colossus and changes in lockdown lifestyles.

Google remains the center of online activity with its search engine, advertising marketplace, and offerings such as the YouTube video platform, giving it a massive global impact.

According to the tech titan, Alphabet’s revenue in the recently ended quarter jumped about 41 percent over the same period last year, as its online ad engine and cloud services thrived.

Fellow giant Facebook, despite its whistleblower scandal, has also declared huge profits, like Microsoft, although Twitter reported large losses due to the settlement of a shareholder lawsuit.

“This quarter’s results show how our (artificial intelligence) investments are enabling us to build more useful products for people and our partners,” said Sundar Pichai, CEO of Alphabet and Google.

“As digital transformation and hybrid work continue to shift, our cloud services are helping organizations collaborate,” he said.

According to Alphabet, from July to September, its video service sold $7.2 billion of ad space targeted by content and users, up from $5 billion in the same period last year.

Its remote-computing business saw revenue of about $5 billion, up 45 percent over the previous year.

But Google’s driving force remains advertising, with the company set to account for 28.6 percent of the global digital advertising market in 2021, just ahead of Facebook’s 23.7 percent share, according to eMarketer.

Alphabet’s earnings have skyrocketed as the tech giant faces increased scrutiny from regulators about its power.

Google is one of those Internet giants that has been in the crosshairs of regulators and critics worried about whether they unfairly dominate markets and stifle competition.

South Korea’s antitrust watchdog fined Google nearly $180 million in September for abusing its dominance in the mobile operating system and app markets, the latest in a series of regulatory moves against tech giants around the world.

Google is also facing the threat of a new antitrust lawsuit from US officials over the alleged power of the Silicon Valley conglomerate in the online advertising market.

The latest figures build on the trend of the pandemic which has seen a boom in people using the internet for shopping, work, learning and entertainment.

E-commerce advertisers have been particularly attractive to Google because of the number of ads placed on its YouTube video platform.

Google’s results came on the same day Microsoft announced an increase in quarterly earnings due to cloud computing demand, saying it posted a profit of $20.5 billion in the just-ended quarter. Revenue rose 22 percent from the prior quarter last year to $43.5 billion.

And a day earlier, Facebook announced that its profit had risen to $9.2 billion in the third quarter — a 17 percent increase — and its users rose to 2.91 billion.

The strong financial figures came as the major social network was grappling with a new crisis as former employee Frances Haugen leaked internal studies that showed executives were aware of their sites’ potential for damage.

Twitter post a loss

Although Twitter posted a net loss of $537 million in the quarter on Tuesday after settling a lawsuit alleging that investors were misled about slowing user growth.

Twitter still posted an operating loss of $743 million, driven by more than $800 million of settlements, despite revenues rising sharply, helped by strong ad sales.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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