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Google’s parent alphabet makes record profits again | Business News

Google’s parent company, Alphabet, recorded record profits for the third straight quarter, supported by higher advertising spending as more consumers shop online during a pandemic.

The company revealed that it exceeded its quarterly revenue expectations despite new restrictions on how to track customers online.

Alphabet, the world’s largest provider of search and video advertising, has increased revenue to $ 65.1 billion (£ 47.29 billion) and Google’s revenue has increased 41% to $ 53.1 billion (£ 38.58 billion). rice field.

Meanwhile, Alphabet’s quarterly profit reached $ 18.93 billion (£ 13.75 billion), marking the third quarter of the company’s record profit.

Alphabet’s share has risen 24% in six months and 62% so far, significantly outpacing the entire market as consumers spend more lives online during the pandemic.

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The US Department of Justice is preparing to sue Google for its antitrust business practices.

However, investors are nervous about recent changes in the way companies track users. In April, Apple introduced a new privacy notice. This allows users to prevent companies such as Google and Facebook from tracking activity on other apps and websites.

This update is included in iOS 14.5 and iPhone apps need to get the permission of the device owner before collecting this additional data.

The two companies said this week that the change has already affected Snapchat and Facebook’s performance this quarter.

Google is also facing the heat from US lawmakers and campaign groups who claim the company has too much power.

In a court filing by a U.S. state group opened this week, the group claims that search giants are abusing the monopoly of online advertising to limit competition and harm consumers. There is.

“Google is now leveraging its huge market power to withdraw very high taxes of 22-42% of advertising costs. Otherwise, it will advertise in online newspapers, cooking websites, blogs, etc. It’s flowing to the myriad of online publishers and content producers who have sold and survived. Websites and apps. “

Bloomberg News reported last month that the US Department of Justice is preparing to sue Google for its antitrust business practices.

Google’s parent alphabet makes record profits again | Business News

Source link Google’s parent alphabet makes record profits again | Business News

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