Google parent Alphabet Inc reported record quarterly revenue and profit on Tuesday, powered by a surge in advertising spending amid more consumers shopping online, and beat analysts’ estimates for both metrics.
Shares of Alphabet rose 5% in extended trading.
The digital ad market is booming, with consumers shifting to shopping largely online due to the pandemic, leading companies to rely on data gathered from customers’ orders and online activity to launch new products and know their market better.
Alphabet said revenue from Google advertising rose nearly 70% to $50.44 billion.
Ad revenue for the company’s streaming video platform YouTube jumped 83.7% from the year-ago quarter to $7 billion, as advertisers continued to used the site to reach viewers at home during the coronavirus pandemic.
Total revenue of the internet’s biggest supplier of search and video ads rose 61.6% to $61.88 billion, well above Wall Street estimates of $56.16 billion, according to IBES data from Refinitiv.
Net income during the quarter was $18.5 billion, surpassing the previous record of $17.9 billion in first quarter.
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