Shares of Alphabet (GOOG/GOOGL) are up 6% after the technology company posted third-quarter financial results that beat Wall Street forecasts.
The parent company of Google reported earnings per share (EPS) of $2.12 U.S., which was well ahead of the consensus estimate of $1.84 U.S.
Revenue in the quarter came in at $88.27 billion U.S., which topped Wall Street’s consensus forecast of $86.30 billion U.S. Sales were up 15% from a year earlier.
YouTube’s advertising revenue totaled $8.92 billion U.S. compared to $8.89 billion U.S. that was expected among analysts.
Google Cloud brought in revenue of $11.35 billion U.S. versus $10.88 billion U.S. that was forecast on Wall Street.
Search revenue in the July through September quarter totaled $49.39 billion U.S., which was ahead of a consensus estimate of $49.02 billion U.S.
Alphabet also reported capital spending during Q3 of $13.06 billion U.S., which was above estimates of $12.66 billion U.S.
Analysts have been focused on the company’s capital expeditures as Alphabet continues to spend heavily on new artificial intelligence (A.I.) technologies.
In August of this year, Alphabet unveiled its new Android software update and its latest Pixel smartphones that employ the company’s Gemini A.I. assistant.
The company also continues to deal with several antitrust lawsuits that accuse it of operating as a monopoly, particularly with its online search portal and advertising business.
Prior to today (Oct. 30), Alphabet’s stock had gained 23% so far this year and was trading at $169.68 U.S. per share.
