Google parent Alphabet has reported a strong second quarter with revenues up to almost $38.9 billion, a 19% gain from the same period last year. Growth in its mobile search, YouTube, and cloud has strengthened in all regions and has helped turn over net income of $9.95 billion. There was also good Android news coming from the Pixel 3a.
When it comes to comparing that last number to 2018's result, it should be noted that the European Commission issued its record $5 billion antitrust fine last June. Disregarding that fine, though, income is still up a healthy 20%. Still, regulatory scrutiny remains a concern that could affect future returns.
Coming into the launch of the Pixel 3a and 3a XL, Alphabet had been seeing soft numbers in overall device sales. There were worries that the hardware department would undergo downsizing — though it seems like the focus has only been turned away from tablets for the moment.
With the new budget phones out, Google CEO Sundar Pichai claimed a doubling in sales from this time last year — though keep in mind that there is no budget-level analogue to compare with and that the premium Pixel 2 series had been on the market for about 6 months. However, one big benefit rightly pointed out is the number of carrier partnerships Google was able to achieve for this launch and which should, hopefully, carry over to the Pixel 4 debut.
Expenses continued to grow with employment — more than 4,100 people were hired, most of them to cloud operations — and R&D leading the way.
According Refinitiv (via Reuters), Wall Street consensus sought revenue of $38.2 billion, or about 16.2%. As of 3:15 p.m. PDT, Alphabet Class A and Class C shares have soared 9% from the close of day trading.