Google’s owner Alphabet Inc posts record revenue of $65.1 billion

Google’s owner Alphabet Inc posts record revenue of $65.1 billion

by Pranali Mehta

For the third quarter in a row, Alphabet Inc., Google's parent firm, has reportedly posted record profits, boosted by an increase in marketing budgets as more people shopped online during the pandemic.

Despite new constraints on how they follow clients online, the corporation stated that the quarterly sales exceeded their expectations.

In spite of security and privacy issues and its dominant status, the corporation delivered another spectacular quarter of earnings.

Alphabet, which is the world's leading search and video ad company, has seen its revenue jump to $65.1 billion (£47.29 billion), while Google's sales increased by 41% to $53.1 billion (£38.58 billion).

Meanwhile, quarterly profits also topped $18.93 billion (£13.75 billion) for Alphabet, marking the corporation's third consecutive quarter of record profits.

Alphabet's stock has climbed 24% in the last six months and 62% so far this year, outpacing the industry as a whole, particularly as people have spent more time online due to the coronavirus pandemic.

Investors, on the other hand, are concerned about recent alterations to the company's user tracking system. In April, Apple released an updated privacy policy that allowed consumers to opt-out of firms like Google and Facebook tracking their activities across websites and apps.

The iOS 14.5 update made it obligatory for iPhone apps to obtain the device owner's permission before gathering this extra data.

Google is also under pressure from lawmakers and advocacy organizations in the United States, who claim the business wields perhaps too much power.

According to a court lawsuit filed by a collective of US states, the search giant is accused of abusing its dominant power in internet advertising to hinder rivals and hurt consumers.

As per the states, Google presently uses its enormous market dominance to retrieve a rather high tax of 22% to 42% of the ad dollars which would otherwise stream to the numerous online publishers as well as content producers, including online newspapers, cooking blogs, and forums, who survive by selling online ads on their websites and apps.

Source credit: https://news.sky.com/story/google-parent-alphabet-hits-record-profits-again-12445445

 

Pranali Mehta

A chemical engineer by qualification, Pranali Mehta dutifully walked down the slated path and worked in a chemical firm for a year. Her passion for writing however, pushed her into experimenting with the same as a career. With over three years of experience in content writ Read more...