Google‘s parent company Alphabet Inc. posted record profits for the third consecutive quarter during the pandemic, catapulting shares 4% to a 52-week high in after-hours trading Tuesday. Search engine giant GOOGL, -0.82% GOOG, -0.84% reported net income of $ 17.93 billion, or $ 26.29 per share in its first fiscal quarter, compared to revenue. net of $ 6.84 billion, or $ 9.87 per share, in the prior year. trimester.
Revenue after eliminating traffic acquisition costs improved to $ 45.6 billion from $ 33.7 billion in the prior year period. Analysts surveyed by FactSet had estimated a net income of $ 15.76 per share, on ex-TAC income of $ 51.5 billion. Traffic acquisition costs were estimated at $ 9.1 billion, which would give Alphabet revenue of $ 42.4 billion when mined. “Over the past year, people have turned to Google Search and many online services to stay informed, connected and entertained. We continue to focus on providing reliable services to help people around the world, “Alphabet Chief Executive Sundar Pichai said in a statement releasing the results Tuesday. Search was the bread and butter of the family, again, with $ 31.9 billion in sales, compared to $ 24.5 billion in the same quarter a year earlier. YouTube ad sales increased 49% year-over-year to $ 6 billion. Google’s cloud revenue improved 46% to $ 4 billion, although the division trailed rivals Amazon.com Inc. AMZN, + 0.25% and Microsoft Corp. MSFT, + 0.16%. An increase in advertising also bodes well for Facebook Inc. FB, + 0.17%, which reports its first-quarter results on Wednesday. Last week, Snap Inc. SNAP, + 0.82% reported a 66% increase in quarterly revenue thanks to strong ad sales. Google’s latest strong quarter belies the antitrust lawsuits it faces from the Justice Department and two groups of state attorneys general over its search business. More importantly, a growing number of developers are sharing stories that they say illustrate Google’s bullying behavior. On Monday, Roku Inc. ROKU, -2.16% warned YouTube TV customers that Google’s Internet Pay TV service could soon be discontinued on the Roku platform “because Roku cannot accept Google’s unfair terms because we believe they could harm our users. ” The Roku spokesperson told MarketWatch, “it is attempting to use its YouTube monopoly position to force Roku to accept predatory, anti-competitive and discriminatory terms” through its negotiations around the YouTube TV application. A YouTube TV spokesperson called the claims “unfounded” and said it “has made no requests to access user data or interfere with search results.” Last week, Jared Sine, legal director of Match Group Inc. MTCH, + 3.48%, told a Senate subcommittee on competition policy, antitrust and consumer rights that Google called Match the night before his testimony was made. public to the press why his testimony differed from Match Comments in his last earnings call. Senator Richard Blumenthal, D-Connecticut, was quick to respond to the call as “potentially actionable.” Wilson White, Google’s senior director of public policy and government relations, classified the call as “an honest question” and did not consider it a threat. “We would never threaten our partners,” he said, because they are the lifeblood of the Google Play app store. Read more: Senate hearing on app stores puts Apple and Google under regulatory spotlight Chorus of criticism intensifies, antitrust lawyers argue, amid antitrust lawsuits against Google and Facebook Inc. FB, + 0.17%, as well as next week’s judgment between Epic Games Inc. and Apple Inc. AAPL, -0.24% on the commission fee of 15% to 30% of the latter for developers in the App Store. Despite regulatory outbursts, Alphabet shares are up 31% so far this year, while the broader SPX index of the S&P 500, -0.02%, is up 11.5% in 2021.