Despite a massive anti-trust fine, Alphabet reports a 21 percent jump in quarterly revenue, maintaining a growth rate that is rarely seen among companies its size and suggesting the big sales gains enjoyed recently by the other Internet firms are not done yet. Ciara Lee reports.
It may have seen a quarterly jump in revenue of 21 percent. But Alphabet's pockets would have even been fuller had it not just faced a 2.7 billion dollar EU antitrust fine - for favouring its own shopping service. The owner of Google and Youtube says costs are rising faster than sales as more searches shift to mobile devices - those worries hitting its share price in after hours trade in New York. But despite this, growth remains strong and the company made 3.5 billion dollars in net income. (SOUNDBITE) (English) CRAIG ERLAM, SENIOR MARKETS ANALYSTS, OANDA, SAYING: "The thing that's sustainable about the Google model is how diverse it is not just reliant on things like search. There's a whole number of aspects to the business under Alphabet which is going to continue to drive revenue growth. Things like say the cloud business for example is an area where it's seen extraordinary growth." Alphabet and social media rival Facebook, together dominate the online ad market, competing for advertising dollars. This year, Google is expected to have $73 billion in net digital ad revenue worldwide While Facebook is expected to take in $36 billion. (SOUNDBITE) (English) CRAIG ERLAM, SENIOR MARKETS ANALYSTS, OANDA, SAYING: "I think people are still very optimistic about the earnings potential for a number of these big tech names. It's been a stellar year so far both in terms of revenues but also in terms of their share performance. We're seeing it up quite considerably." The technology sector has led a big rally in U.S. stocks in recent weeks. Facebook will be hoping to follow suit, reporting its earnings on Wednesday.