Alphabet Inc 3Q17 Earnings Send Shares Higher

Alphabet Inc (NASDAQ:GOOG) 3Q17 earnings were released after closing bell tonight, and the company posted GAAP earnings of $9.57 per share on $27.8 billion in revenue, a 20% increase (23% in constant currency) year over year. Analysts had been expecting earnings of $8.33 per share on $27.2 billion in revenue. In last year’s third quarter, the company reported $22.45 billion in revenue and $7.25 per share in GAAP earnings. The shift from non-GAAP to GAAP reporting continues.

Alphabet 3Q17 earnings

Google Properties revenues rose from $16.1 billion last year to $19.7 billion, while Google Network Members’ properties revenues rose from $3.7 billion last year to $4.3 billion this year. Total Google ad revenues rose to $24.1 billion from $19.8 billion last year. Consensus for Google Sites revenue stood at $19.3 billion. Traffic acquisition costs to Google Network Members rose to $3.1 billion, while traffic acquisition costs to distribution partners rose to $2.4 billion. Total traffic acquisition costs rose to $5.5 billion.

Google other revenues rose to $3.4 billion from $2.4 billion last year. Google segment revenues rose to $27.5 billion from $22.3 billion last year. Other bets revenues jumped to $302 million from $197 million last year; Other bets operating losses narrowed slightly to $812 million from the year-ago operating losses of $861 million.

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Larry Fink,Laurence Fink, BlackRock, Inc., world's largest asset manager, American multinational investment management corporation, American financial executive, CEO, Chairman, Barclays Global Investors, assets under management, alternative investments, Wall Street, BLK, Hedge funds, valuewalk, ETFs, ishares, robo-investing, robo analysts, quant fundsBlackRock CEO Laurence Fink spoke at Morningstar's recent conference, and he talked about a variety of things, like his concerns about company culture at a time when all the firm's employees are working at home. Despite those concerns, he doesn't think BlackRock will ever be 100% working in the office. He thinks employees will always Read More


“We had a terrific quarter, with revenues up 24% year on year, reflecting strength across Google and Other Bets,” said Chief Financial Officer Ruth Porat in a statement on the Alphabet 3Q17 earnings release. “Our momentum is a result of investments over many years in fantastic people, products and partnerships.”

Cost per click keeps stabilizing?

Aggregate paid clicks grew 47% year over year and 6% quarter over quarter. Paid clicks on Google properties grew 55% year over year and 7% sequentially, while paid clicks on Google Network Members’ properties jumped 10% year over year and 2% sequentially. Aggregate cost per click declined 18% year over year but grew 1% sequentially. Cost per click on Google properties was down 21% year over year but up 1% sequentially, while cost per click on Google Network Members’ properties declined 5% year over year but was flat sequentially.

Following the Alphabet 3Q17 earnings release, the company’s stock surged in after-hours trading, climbing as much as 3.22% to $1,023.22.