Mountain View’s Google-parent Alphabet Inc earns record profit amid Google ad surge

Google-parent Alphabet Inc had logged a record profit over fiscal Q3, 2021

by Sourav D
Mountain View’s Google-parent Alphabet Inc earns record profit amid Google ad surge

Alphabet Inc., the Mountain View, California-headquartered Google-parent, had reported a record third-quarter profit this week, largely boosted by higher-than-anticipated ad sales, illustrating a meteoric upsurge in Google LLC’s advertisement business with online shopping hitting new limits.

In point of fact, Alphabet Inc-owned Google LLC has been shelving more online advertisement revenues than any tech giants in the cyberspace with demands for ads ramping up across a swathe of its core units ranging from Google search engines to YouTube video services to partnerships around the web.

In tandem, demands of Google LLC’s ad services had jumped by many folds since the onset of pandemic outbreak, while a lion’s share of the people across the globe who had turned online amid a pandemic-led restriction last year, seemingly developed a new behaviour to spend more in online.

Meanwhile, addressing to a havoc-scale shift in consumers’ behaviour to spend more in online, Google’s Chief Business Officer, Philipp Schindler said, “The consumer shift to digital is real and will continue even as we start seeing people return to stores.

The underlying takeaway is that people want more choice, they want more information, more flexibility, and we don't see this reversing.

Alphabet Inc logs record profit on third quarter

According to Alphabet Inc quarterly earnings’ report, Google LLC’s online ad revenues surged 41 per cent to $53.1 billion in Q3, 2021 that ended on September 30, while Alphabet Inc’s overall sales had soared to $65.1 billion compared to an analysts’ estimate of $63.3 billion, data from Refinitiv had unveiled.

Aside from that, Alphabet Inc had coffered a quarterly profit of $18.93 billion or $27.99 a share in the latest quarter, beating an analysts’ estimate of $24.08 per share. Although, Alphabet Inc investors were bracing for supply challenges up to some extent at its cloud businesses amid a shortage of raw materials and chips, Alphabet Inc CLASS A shares had shelved 7.62 per cent weekly percentage gain, wrapping up Friday’s Wall Street at $2,960.92 apiece after leapfrogging as much as 3.0 per cent following release of its quarterly earnings’ report.