Google delivered exceptional sales growth in the past quarter, it took advantage of an uneven pandemic reopening, delivering to homebound users spending more time on screens as well as consumers venturing out to shop and travel.
Second-quarter sales for Alphabet Inc., Google’s parent, surged past Wall Street estimates due to an increase of ads from retail marketers eager to encourage consumer spending through e-commerce on YouTube and by physically returning to stores.
Revenue, excluding payments to distribution partners, was about $51 billion in the period ended June 30, the company said in a statement. Analysts projected $46.1 billion, according to data. Profit was $27.26 a share, topping the average estimate of $19.35.
Google, the leader in digital advertising, is on target to finish the year with almost 29% of the global market.
Alphabet Chief Executive Officer Sundar Pichai has targeted e-commerce as a significant growth area for the internet giant. He intensified his company’s relationship with Shopify Inc. to sharpen its commerce efforts while chasing Amazon.com Inc. Subsidiary YouTube has also joined. The world’s largest video platform bought an Indian company, Simsim, earlier this month to push deeper into video commerce.
Shares gained about 3% in extended trading after closing at $2,638. The stock has jumped 50% this year. Search and other related businesses generated fiscal second-quarter sales of $35.8 billion. Analysts, on average, estimated $32.2 billion. YouTube ad revenue jumped 84% to $7 billion. Analysts were looking for $6.33 billion.
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