Alphabet gains 4% postmarket as Q2 near-miss dodges investors' fears
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Alphabet is up slightly after hours - (NASDAQ:GOOG) +3.5%, (NASDAQ:GOOGL) +3.5% - despite a narrow miss of estimates that apparently assuaged some investor fears after the gloom cast over the Internet ad sector from Snap's results.
Revenues grew 12.6% to $69.69B, just shy of expectations for $69.8B, with strength in Search and Cloud. As with other tech names, it's seeing foreign-exchange challenges from a strong dollar: In constant currency, revenues would have been up 16%.
Operating income ticked up slightly, to $19.45B from $19.36B, though operating margin fell to 28% from a year-ago 31%.
Net income fell to $16B from a year-ago $18.53B. In per-share terms, the company made $1.21 vs. expectations for $1.27.
Traffic acquisition costs rose 11.8%, to $12.2B. Revenue ex-TAC came in at $57.47B.
Revenue breakout: Google Search and other, $40.7B (up 13.5%); YouTube ads, $7.34B (up 4.8%); Google Network, $8.26B (up 8.7%); Google other, $6.55B (down 1%); Google Cloud, $6.28B (up 35.6%); Other Bets, $193M (up 0.5%).
Operating income by segment: Google Services, $22.8B (up 1.9%); Google Cloud, -$858M (vs. prior -$591M); Other Bets, -$1.7B (vs. prior -$1.4B).
The company also hired up somewhat more than expected, with headcount now just over 174,000 vs. a forecast 168,500.
Conference call to come at 5 p.m. ET.