Alphabet – Google’s parent company – reported earnings of $27.77 billion in the third quarter, up 24 percent from the same period last year.
The amount surpassed expectations of the company and analysts. Before the release of the report, analysts expected Google to earn $27.2 billion, according to a Business Insider report.
Following the announcement, Alphabet’s stocks rose between 3 and 4 percent in after-hours trading on Thursday.
Alphabet reported that most of the earnings in the third quarter are still coming from its online ad business across the world (advertising, AKA Google and its domination of web search).
With regard its self-driving cars at Waymo, hardware like the new Pixel phone, and Google Fiber, however, those are still losing money, Mashable reported.
Those ventures, which Alphabet calls “Other Bets,” lost $812 million in the third quarter.
Alphabet Chief Financial Officer Ruth Porat said in a statement that the company had a “terrific quarter.”
“Our momentum is a result of investments over many years in fantastic people, products, and partnerships.”
Despite losses from the “Other Bets,” Porat said the company “remains excited” about the opportunities.
New Initiatives Highlighted
Google executives also trained the spotlight on its new initiatives like the emerging line up of hardware products and Google’s cloud business.
Google CEO Sundar Pichai told analysts in a conference call, “You’re clearly entering an era where you’re going to have different types of computing experiences.”
“So to do that and to stitch it all together across, I think it’s important that we thoughtfully put our opinion forward.”
Meanwhile, Mashable noted that Pichai indirectly acknowledged the ads on Google purchased by Russian bots during the 2016 U.S. presidential election.
“At our core, we remain an information company. As new threats arise, we are committed to protecting journalists and media organizations,” Pichai said.
Google exceeded expectations on its earnings in the past quarter, pushing up the tech giant’s shares in the stock market.
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