4 ETFs To Tap Alphabet Post Upbeat Q2 Earnings
Zacks Investment Research | Jul 29, 2016 12:06AM ET
Shares of Google’s parent company Alphabet Inc. (NASDAQ:GOOGL) surged almost 4.1% after hours on Thursday after the company came up with upbeat Q2 earnings results. The market had probably sensed the strong momentum in the Google holding company as the stock had added about 0.5% in the trading session of July 28.
The stock performed remarkably well following its astounding second-quarter release. Alphabet briefly crossed a record high of $810.35/share in the after-market trading post earnings announcement.
Alphabet Earnings in Details
Alphabet reported adjusted earnings of $7.00 per share during the quarter, beating the Zacks Consensus Estimate of $6.47. Adjusted revenues of $17.5 billion were much above the Zacks Consensus Estimate was $16.9 billion.
This is the company’s third quarterly update since it undertook a major restructuring initiative last year. The company reported Google as a single segment while all other Alphabet businesses were combined as Other Bets. Google revenues were up 21% year over year, benefiting from higher revenues from Google websites (up 24%), Google Network Members' websites (up 3%) and Google advertising revenues (up 19%). Total traffic acquisition costs were almost $4 billion, accounting for 21% of total advertising revenue.
Cost per click (CPC) was down 2% year over year. Paid clicks were up 7% year over year. Other Bets revenues –primarily generated by Nest, Fiber and Verily – more than doubled to $185 million.
Despite stiff competition from Facebook (NASDAQ:FB) and Yahoo (NASDAQ:YHOO) , the world’s largest Internet company, Alphabet, continues to enjoy a lot of investor attention. Alphabet benefited from increased use of Mobile Search by consumers, thanks to ongoing efforts to enhance the Mobile Search experience. The company also witnessed strong Desktop and Tablet Search and YouTube and programmatic advertising (read: Zacks Investment Research
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