Alphabet sales grew by 41%

Alphabet, parent company Google, reported for the third quarter of 2021. Comparing with the previous year:

revenue increased by 41%, up to $65.1 billion;
operating profit increased by 88%, up to 21 billion;
net profit increased by 68%, up to 18.9 billion.

Alphabet earned more in the quarter, than analysts expected: 65,1 against 63.3 billion. Earnings per share were also higher than expected.: 28 against 23,5 $. After the report, Alphabet quotes remained practically unchanged - 2783 $.

The company's sales grew in all operating segments, and that's how.

Google Services — 59,9 млрд (+41%). Advertising revenue, which generate Google Search services, YouTube и Google Network, rose to 43%, up to 53.1 billion. Other income, e.g. from Google Play commissions, YouTube Premium Subscriptions and Pixel Gadget Sales, rose to 23%, up to 6.8 billion.

The company stated, what is the privacy policy in iOS 14, used by Apple, “moderately” affected ad revenue. Previously, Snap and Facebook for the same reason reported revenue less than expected.: it has become more difficult for social networks to track user preferences and issue relevant ads.

Google Cloud - 5 billion (+45%). Unlike Microsoft Azure services and Amazon Web Services Google's cloud business remains unprofitable. Compared to last year, the loss has halved, with 1,2 up to 0.6 billion.

Other Bets — 0,2 млрд (+2%). The segment includes revenue, which is generated by innovative directions of Alphabet, e.g. development of self-driving cars Waymo. The segment's operating loss increased from 1,1 up to 1.3 billion.

Alphabet shares outperform S index in 2021&P 500: 61 against 24%.