Google parent company the Alphabet Inc. reported their quarterly profit that surge 24%, these surge is driven by consumers’ rapid shift to mobile devices.
The company said that more companies are continuing to buy more ads on its search engine and other products, while users due to mischievous Google techniques unknowingly clicked on those ads. Revenue, fueled by Google’s advertising business, rose 21% to $21.5 billion in the second quarter from a year ago, beating analysts’ average estimate of $20.76 billion.
With the continued increase of smartphones that are connected by internet more and more people worldwide are boosting internet use and in effect it is also increasing people who use the free services of Google and Facebook Inc.
Alphabet stock, which struggled and went down by 1.6% in 2016 through Thursday’s close, jumped 4% in after-hours trading. The company had recently struggled to meet investor expectations, with earnings missing analysts’ estimates in eight of the past 12 quarters.
Facebook, Google’s chief rival, also is gaining strength from mobile. Facebook said Wednesday that its second-quarter profit nearly tripled from a year earlier to $2.1 billion, easily beating Wall Street estimates. Mobile accounted for 84% of its $6.2 billion in second-quarter advertising sales.
While Google still controls about 31% of the roughly $187 billion world-wide digital-ad market, Facebook’s market share has risen to 12% from 8.6% in 2014, according to research firm eMarketer.
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