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After the market closed last night, Google (also known as Alphabet), reported its second-quarter numbers. The street had high expectations for the company, but those were easily surpassed as Google posted its fourth consecutive quarter of record profits. The stock is up another 3% in after-hours trade.
The pandemic has provided a massive tailwind for the company, with a huge shift to online spending. The more people live, work and shop online, the more advertising money is diverted to Google and Youtube. If you look at Google's second quarter revenues for the last few years, you can see that shift. For 2018, 2019 and 2020, revenues were in the $30 billions and growing steadily. Last night, they reported $62 billion!
Google's cloud division is also gaining traction, with growth in revenue from $3 billion to $4.5 billion. Losses in the cloud division decreased from $1.4 billion a year ago to 'only' $600 million.
In 2007, the then CEO of Microsoft, Steve Ballmer, called Google a "one trick pony". This pony might still depend on its one trick, but it certainly does it very well!
