Alphabet (NASDAQ: GOOGL) Inc, the owner of Google, reported that the efforts to shift the advertising business of the company in the direction of mobile applications have proved itself, as the profit in the second quarter exceeded market expectations.
The results put an end to concerns about how Google can influence the growth of the popularity of mobile applications. The company has a strong position in the mobile market thanks to the Android platform, but has long relied on the income from the search engine for the PC.
Alphabet Revenue rose 21.3 % to $ 21.5 billion, while profit jumped to $ 4.88 billion from $ 3.93 billion a year earlier.
The pressure on Google intensified after Facebook (NASDAQ: FB), its main competitor in the mobile advertising, reported a 63 % rise in advertising revenue. The rivalry between the companies has intensified since advertisers are increasingly investing in mobile systems.
The revenue of "other projects" division grew by 150 % to $ 185 million, while the operating loss widened to $ 859 million. The unit includes the developer of fiber-optic networks Google Fiber, Nest equipment manufacturer, self-driving cars and research X units.
Google's revenue from advertising rose 19.5 % to $ 19.14 billion.
The profit of Alphabet, excluding certain balance sheet items, amounted to $ 8.42 per share, beating the average forecast of analysts polled by Reuters, at $ 8.04 per share.
As for another US internet giant - Amazon.com Inc (NASDAQ: AMZN), it reported a strong result of both traditional and new business on Thursday, as global retail online sales and performance of cloud services exceeded market forecasts.
The world's largest online retailer published a revenue forecast above the expectations.
Amazon’s profit was $ 857 million in the second quarter, or $ 1.78 per share, while analysts polled by Reuters had forecast an average rate of $ 1.11 per share.
Amazon expects net sales in the current quarter of $ 31.0-33.5 billion. Wall Street on average had forecast $ 31.6 billion, according to Reuters data.
Amazon Web Services revenue grew by 58.2 % to $ 2.89 billion, while there was expected $ 2.83 billion, according to FactSet StreetAccount.