Google Parent Alphabet reported on Monday an increase in first quarter net income supported by strong digital advertising sales and an accounting adjustment.
The net income of the company based in Mountain View, California increased 73 percent to $ 9.4 billion. or $ 13.33 per share. Earnings, adjusted for non-recurring earnings, including those of the accounting change, were $ 9.93 per share.
The results exceeded Wall Street expectations. The average estimate of 13 analysts surveyed by Zacks Investment Research was for earnings of $ 9.21 per share.
The Internet search leader recorded revenues of $ 31.15 billion in the period. After subtracting Alphabet's advertising commissions, revenues were $ 24.86 billion, also surpassing Street's forecasts. Eleven analysts surveyed by Zacks expected $ 24.2 billion.
Still, Google's sunny quarter comes in the context of impending privacy regulations in the US. UU And Europe.
The backlash in Facebook's "abuse of confidence" with respect to Cambridge Analytica could cause political advertising spending on Google properties, including YouTube. The Federal Election Commission has begun to review the rules on notices that directly support the federal candidates, although that would not have prevented the Russian meddling in the 2016 US presidential race.
In Europe, on May 25 the Regulation begins General Data Protection. force Google, Facebook, Slack and other US companies UU to adopt policies that make consumers more aware of the data they are delivering to online services. If users around the world become more cautious about how their data is used, it could slow down the Google ad revenue machine.
But these clouds did not deter Alphabet investors who sent shares in about 1 percent on the aftermarket.
at Alphabet Inc. have risen 2 percent since the beginning of the year, while the Standard & Poor's # 500 index has remained almost flat.