Google's Alphabet hit by Europe's other GDPR: Global Domination = Profit Reduction

Google is facing a massive fine but its business is doing just fine

Shares of Google parent Alphabet soared to all-time highs Monday evening, after the company posted a surge in ad revenue that partially made up for a record-breaking $5 billion fine from the EU. Adjusted earnings, excluding the European Commission fine, were $11.75 per share.

Alphabet's advertising remained strong, at $28 billion in the second quarter.

Shares rocketed more than 4pc in after-hours trade, as the market welcomed the strong results, in what could be a sign investors tempered. The EU Competition Commission found that Google violated antitrust regulations by requiring that phone manufacturers install certain Google apps on Android phones (like Search and Chrome), pay these manufacturers to limit the installation of Search apps on their phones to Google Search, and ban the release of handsets using unapproved versions of Android. Thirteen analysts surveyed by Zacks expected revenue of $25.6 billion.

Amazon's encroachment into advertising has threatened Google's lucrative deals with media companies and advertisers.

Similarly, analysts don't expect European Union antitrust probes to force changes that significantly dent Google earnings. The shares rose as much as 5.3 per cent, the most in nearly nine months, to US$1,275 at the market open in New York Tuesday. Google is appealing the ruling. "We are analyzing the decision and I think it's too early to comment or speculate", he said.

Alphabet today reported $32.7bn in revenues in the three months to June 30, up 26 per cent compared to Q2 2017, and 23 per cent in terms of constant currency.

Crude oil slightly lower as USA inventories rise
The commodity has fallen this month in wake of escalating US-China trade tensions and mounting concerns about renewed oversupply. United States crude stocks rose by 5.8 million barrels last week, compared with a forecast of a decline of 3.6 million barrels.

On the company's conference call, CFO Ruth Porat said, "One of the biggest opportunities for investment continues to be our ads business, where we're continuing to invest meaningfully".

Google brings in the vast majority of Alphabet revenues, actually its "Othe Bets" are loss making right now.

Following a reorganization of the company, theGoogleunit that includes the main search engine and YouTube video service still delivered the lion's share of revenues at $32.5 billion, with "other bets" driving $145 million in revenue.

Google Chief Executive Sundar Pichai told analysts that investments in artificial intelligence software meant to better predict where to place ads are making its services more attractive to advertisers.

Its Other Bets segment, which includes companies like the driverless auto firm Waymo, reported a quarterly operating loss of $732m, up from $633m previous year.

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