Alphabet quarterly revenue beats analyst estimates, warns that expenses will remain high

There is one maybe-overlooked part of Google’s report that we’ll highlight: The company’s “traffic acquisition cost”, or TAC, actually increased as a percentage of Google’s revenue year-over-year. The average cost-per-click was down 23% year over year. On average, analysts anticipate that Alphabet will post $31.00 EPS for the current year.

Revenues from Europe, the Middle East and Africa made up $8.5bn of the total revenue, a growth of 14 per cent year-on-year. Despite this increase in revenue, profits for 2017’s second quarter came in at $3.5 billion – a fall of nearly 30 percent. Other bets revenues grew to $248 million from $185 million a year ago.

That drop is down to the €2.4bn that Google was fined by the European Commission last month, after ruling that Google unfairly promoted its own shopping service in search results. Patriot Wealth Management Inc. now owns 5,599 shares of the information services provider’s stock valued at $4,747,000 after buying an additional 141 shares during the last quarter.

Per eMarketer, Google will take about $61.80 billion in search ad revenue in 2017 – or 61.6% of the search ad market worldwide – but come in second to Facebook in display ad revenue. Pichai joined Google in 2004 and helped lead the development of key consumer products which are now used by over a billion people. Zacks Investment Research cut Alphabet from a “buy” rating to a “hold” rating in a report on Monday.

Here is the rundown on market activity for Alphabet Inc.

The decision – if it survives an expected appeal process – could prove to be momentous for Google, as well as for competition law in general.

However, marketers have pressured Google to offer more guarantees that their ads only appear with acceptable content, likely squeezing margins, Mr. Wieser said.

YouTube ads, specifically, are much cheaper for advertisers, said Mark Ballard, vice president of research at Merkle Inc., a digital-marketing firm. In that role, he oversees several of Google’s most profitable divisions including search, maps, Android, and YouTube, while also leading the company’s latest “AI-first” push.

In addition to Google co-fonder Larry Page and Pichai, some of the other Alphabet board members include co-founder Sergey Brin, former CEO Eric Schmidt and Kleiner Perkins’ John Doerr as well as Google SVP Diane Greene.

The consensus estimate looks for Alphabet to report gross revenue of $25.64 billion and net revenue of $20.9 billion, both up 19% from the year-ago quarter, with adjusted earnings growing 18% to $8.25 a share.

Google’s “other” business – everything that’s not advertising, including its cloud business and Google Play app store – grew 42 percent year over year to $3.1 billion. However, if the stock hasn’t been performing up to expectations recently, investors may want to do a little more research on the stock to make sure they know what is going on.