Still on financials, Alphabet (Google’s parent company) also reported its own earning and it seems so far that the second quarter has been for tech especially. The Wall Street Journal reports that Google’s profit increased by 24 percent in the second quarter of 2016 on strong advert demands by users. “Revenue, fueled by Google’s advertising business, rose 21% to $21.5 billion in the second quarter from a year ago, beating analysts’ average estimate of $20.76 billion.” Facebook also reported some serious growth in ad revenue as well this week as well even though Google still reportedly controls about 31 percent of the global $187b digital advert market. A further analysis by market share shows that Facebook now controls 12 percent of the global digital ads market up 3.4 percent from 2014. Overall though, Alphabet’s profit rose to $4.88b from $3.93 last year.
Ad clicks on Google increased 29 percent when compared to 2015 and this growth per quarter will the fourth in a row.
Google is the biggest in the Alphabet group and still accounts for most of the revenue even though the Wall Street Journal says those other companies in the group like Google Ventures, Nest and Google fibre increased to $185m from $74m last year while operating loss widened to $859m from $660m.
As of yesterday, Alphabet which briefly overtook Apple to first place as the biggest company in the world by market value came second just after Apple with a market value of $540b. As of yesterday, Apple closed with a market capitalisation of $567b.
In April, Google said it recorded over a billion monthly users on Chrome for iOS and Android and from the earnings report, mobile users are contributing a lot to earnings of tech companies.