On Thursday, Alphabet reported their earnings for the third quarter which exceeded the expectations of analysts. Share prices were $1,020 in after-hours trading — leaving the all-time intraday high of $1,016.31 that was set on October 18 in the dust.
Ad prices lowered to a level that was more than expected in the quarter and traffic costs exceeded predictions. Revenue, however, was boosted by a surge in the number of clicks on Google ads all around the world that was higher than expected.
Alphabet Inc. reported earnings per share of about $9.57 per share, higher than the consensus EPS forecast of $8.39 by Zacks Investment Research.
It’s revenue was reported to be at $27.77 billion, higher than the expected $27.2 billion by a Thomson Reuters consensus estimate.
The data showed that Alphabet outperformed itself compared to the previous year, as sales spiked up by 24 percent. Alphabet’s revenue was reported to be at $22.45 billion and earnings of $7.25 per share in the third quarter of 2016.
A majority of Alphabet’s revenue is made from ads: Cost per click, the amount that advertisers pay Google every time their ad is clicked, saw a drop of 18 percent as opposed to the predicted 16.3 percent. TAC, which stands for traffic acquisition costs, was at $5.502 billion, exceeding the predicted $5.24 billion. Aggregate paid clicks, which measures how many times users click on ads, went up by 47 percent, more than the expected 46.1 percent.