Google revenue jumps to $46 billion, stock soars
October 29, 2020 at 22:18
The tech giant's parent company, Alphabet, reported revenue of $46.17 billion for the three months ending in September — a 14% increase from the same period last year — highlighting its continued dominance even while facing numerous obstacles.
The company also reported net income for the third quarter of $11.2 billion, blowing past analyst estimates.stock rose more than 8% in after-hours trading on Thursday.
"We had a strong quarter, consistent with the broader online environment," Sundar Pichai, CEO of Alphabet and Google, said in a statement.
"It's also a testament to the deep investments we've made in AI and other technologies."
In the third quarter, however, Google's advertising revenue jumped nearly 10% year-on-year, with search advertising revenue growing 6.5% and YouTube ad revenue surging 32%.
Pichai defended his company's handling of content, saying it approaches its work without political bias, "full stop."
The Justice Department alleged that Google has stifled competition to maintain its powerful position in the marketplace for online search and search advertising.
"We are proud that people choose Google search, not because they have to, but because it's helpful."
The Justice Department, meanwhile, has said "nothing is off the table" when it comes to regulating the company's search dominance.
Though he sought to somewhat downplay that dominance during the earnings call, Pichai also repeatedly touted the indispensability of Google search, particularly during the pandemic.
"This year, including this quarter, showed how valuable Google's founding product, search, has been to people."
Revenue's for Google's cloud business increased 45% compared to the same quarter last year.Source