Tech companies: Google’s parent company Alphabet increases sales by 41% – economy

Google’s Parent Alphabet continues to benefit immensely from the digitization of life during the corona pandemic. In the last quarter, the internet company’s sales increased 41% year-on-year to $ 65.1 billion (56.1 billion euros). In terms of profits, there was a jump of $ 11.2 billion to $ 18.9 billion, as Alphabet announced after the U.S. market closed on Tuesday.

As usual, Google’s advertising business contributed the lion’s share of revenue with $ 53.1 billion. While the ads around Google’s search engine are still the mainstay, the Youtube video platform is also making more money. Its advertising revenue increased from $ 5 billion to $ 7.2 billion. But even with this significant increase, some were still disappointed.

Unlike Facebook, Google is only marginally affected by Apple’s measures for more privacy on the iPhone. Since the summer, all app developers have to explicitly ask permission from iPhone users if they want to track their activities on different apps and services for advertising purposes. According to surveys, most users reject this. As a result, many earlier business models in the advertising industry are blending together. According to Facebook, it has become more difficult to personalize advertising and provide advertisers with data on the effectiveness of their ads.

At Google, ads are mostly placed for individual search terms – at this point, Apple’s restrictions are not affecting the internet company. On YouTube, however, some ads were slightly affected by the changes, said CFO Ruth Porat.

Cloud services business grows 45%

Business with cloud services, in which Google wants to close the gap with Amazon and Microsoft, grew by around 45% to nearly $ 5 billion. Here, too, some analysts expected more.

As before, Alphabet’s other subsidiaries generate little revenue, for example with self-driving cars or delivery drones, but high losses. Revenue collected from these divisions hardly increased with an increase from $ 178 million to $ 182 million. They recorded an operating loss of about $ 1.29 billion – after a loss of $ 1.1 billion a year ago.

While Alphabet with its numbers for the last quarter has beaten analysts’ expectations, the stock has occasionally fallen 0.45% in after-hours trading.

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